Suppose the economy is growing at 4% a year, inflation is measured at 0.5% a year, and the federal deficit is relatively high. An economist who suggests that we do nothing is advocating:

Question

Quizplus · Accepted Answer

A functional finance approach suggests that the government should focus on achieving economic goals like growth and low inflation, rather than balancing the budget annually or cyclically.

Suppose the Economy Is Growing at 4% a Year, Inflation