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Discuss: Discretionary Fiscal Policy

Task: Write a response explaining why time lags in discretionary fiscal policy can adversely affect the efforts of the Congress and the President in attempting to maintain a healthy economy. Could it happen that these time lags could actually work to destabilize the economy?

Objective:
- Identify current trends in macro and microeconomics.
- Analyze the relationship between fiscal and monetary policy in an open economy.
- Critically analyze the role of the government in a market economy.

Solution Preview

Please use this tutorial as a model - it is in no way an exhaustive response on this subject.

// Time lags in discretionary fiscal policy, can adversely affect the efforts of the Congress and the President in attempting to maintain a Healthy Economy. In this paper, we would discuss the current trends in macro and microeconomics. Before writing this, we would give a succinct introduction; wherein, we will introduce the topic. //

Time lags on Discretionary Fiscal Policy

Fiscal policy is primarily made at the federal level with the help of the acts of Congress and deeds by the President. This fiscal policy is also used by state and local administrators to make the political economy steady. So, it can be said that the objective of fiscal policy is to alleviate the business cycle, to make decisions related to the extension and slimming down of the company (Macroeconomic Theory, 2008).

// After giving a brief introduction of the topic, we will now discuss how the time lags in discretionary fiscal policy can adversely affect the efforts of the Congress and the President in attempting to maintain a healthy economy.//

Discretionary fiscal policy can be defined as a policy where the administration (government) purposely amends the taxes or the expenditure incurred by them. This is done ...

Solution Summary

This solution is comprised of a 645 word response which acts as a tutorial to guide a student on how to compose a piece of writing on fiscal policy. Two references are also provided in APA format.

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