Tools of Fiscal Policy Discussion Questions

1)Identify the tools of fiscal policy that can be used to have an influence on the state of the economy, and identify the parties who have the authority to implement these policy tools.

2)Identify the fiscal policy actions that can be implemented to have an expansionary effect on the performance of the economy.

3)When expansionary fiscal policy is enacted what is expected to occur that will drive an expansion in the performance of the economy, and what would be the expected impact on the GDP and unemployment rate within the economy.

4)Identify the amount of additional Government spending and also the amount of tax reductions include in the stimulus package.

5)Given Keynesian theory what would be the expected impact on the economy the stimulus package would produce.

6)Compare the economy in November 2009 as compared to the economy in December 2010 relative to GDP and the rate of unemployment. Based on this information evaluate the impact of the stimulus plan.

About Two pages in length, and cite your work with works cited

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