Macroeconomics 2nd Edition by Campbell McConnell ,Stanley Brue,Sean Flynn

تمرين 14

Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How might "politics" complicate fiscal policy? How might expectations of a near-term policy reversal weaken fiscal policy based on changes in tax rates? What is the crowding?out effect, and why might it be relevant to fiscal policy?