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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.
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