fiscal policy and its effect on aggregate supply and aggregate demand

  • Identify major policy options for macro government intervention.
  • Define fiscal policy and describe its importance.
  • Illustrate what the multiplier is and how it works.
  • Explain how fiscal stimulus or restraint is achieved.

Overview

Review the section of your text that covers fiscal policy and its effect on aggregate supply and demand. In addition, find and read two recent articles on this topic. Write a 500-750 word (approximately 2 to 3 page) paper that addresses these questions:

  • What options does the government have regarding fiscal policy?
  • How has the use of these policies changed over time?

Support your conclusions with the findings from the articles and the textbook as well as any other sources you would like to use. Format the paper according to General APA Guidelines. You do not need to include an abstract but you must include a title page and a references page. These pages are not included in your word/page count.