ECON 248 16.2 Using Fiscal Policy To Stabilize The Economy

Keynes suggested that when aggregate demand was insufficient to fulfill production, aggregate demand should be () via ().

Increased, Fiscal Policies

One argument fiscal policies is that they take a long time to () and even then, they () economic situations.

Implement, Lag Behind

The policy where fiscal policies are used to stabilize the economy

Fiscal Stabilization Policy

Changes in fiscal policy which increase aggregate demand in response to a recession, without policymakers having to take deliberate actions. Government spending is an example.

Automatic Stabilizers

When a recession occurs, () also decrease.

Taxing