XECO 212 Week 7 DQ 1 And DQ 2

Question 1

XECO 212 Week 7 DQ 1 And DQ 2

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DQ 1

How does the federal government implement its fiscal policies? Given economic conditions today, do you suggest expansionary fiscal policy or contractionary fiscal policy? How would your suggestions affect production and employment? Why?

DQ 2

Assume the government is running a budget deficit. Should the government raise taxes to balance the budget? Should the government decrease spending to balance the budget? What are the pros and cons of each action?

Answer 1

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