XECO 212 Week 7 DQs

This pack of XECO 212 Week 7 Discussion Questions consists of:

DQ 1: How does the federal government implement its fiscal policies? Given economic conditions today, do you suggest expansionary fiscal policy or contractionary fiscal policy? How would your suggestions affect production and employment? Why?

DQ 2: Assume the government is running a budget deficit. Should the government raise taxes to balance the budget? Should the government decrease spending to balance the budget? What are the pros and cons of each action?