Question
Why might discretionary countercylical fiscal policy actually be destabilizing to the economy?
Answers
economyst
Do a little research, then take a shot. What do you think.
Hint: think about kinds of government policies that, on the surface, are countercyclical fiscal policies. Then think about how those policies are paid for. Does the cost outweight the benefit?
Hint: think about kinds of government policies that, on the surface, are countercyclical fiscal policies. Then think about how those policies are paid for. Does the cost outweight the benefit?