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$1.00 week 5 discussion 1

  • From Economics: General-Economics
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  • Due on Jan. 14, 2012
  • Asked on Jan 11, 2012 at 11:27:01PM
Asked by :
toosie
 
 
Q:

Explain the problem of time lags in enacting and applying fiscal policy. How
could “politics” complicate fiscal policy? How might expectations of a fiscal
policy being temporary weaken the effects of the policy? Respond to at least two
of your classmates’ postings.

 

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Time Lag in fiscal policy ANSWERED
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  • Posted on Jan. 13, 2012 at 01:44:54AM
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anusingh26
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A:
Preview: ... icy 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? Answer: It takes time to ascertain the direction in which the economy is moving (recognition lag), to get a fiscal policy enacted into law (administrative lag); and for the policy to have its full effect on the economy (operational lag).  Meanwhile, other factor ...
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