Question details

7_Fiscal Policy, Deficits, and Debt
$ 12.00

Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy.  How might “politics” complicate fiscal policy?  How might expectations of a near-term policy reversal weaken fiscal policy based on changes in tax rates?  What is the crowding‑out effect and why might it be relevant to fiscal policy?  

Available solutions