Business Finance
GCU Designing and Implementing Fiscal Policy to Overcome Deficit Discussion

Grand Canyon University

Question Description

Keynesian theory entails the demand side economics. The level of customers' spending is determined by their demand relative to goods and services provided to their satisfaction (customers' tests and preferences). The assumption is that a greater level of customer spending implies the existence of stable economy. In other words, when there would be variability in customers’ demand, the fluctuation could create economic instability. This could result in unhealthy economic activity that can reduce government revenue mainly collected through taxation. This in turn creates budget deficit typically in the public sector. Nonetheless, it may not be appropriate to view budget deficit as abnormal or unusual occurrence as such. It is because the government may ultimately prepare sound fiscal policy to overcome the problem. Nonetheless, we can pose the following question: Is it feasible to design and implement a fiscal policy that would overcome deficit spending effectively? Please remember, effectiveness is about achieving a desired goal. The question has been forwarded to all members of the course. What do you think?

Final Answer

Hello, I have submitted your answer. Kindly take a look and propose any revision. Remember to always invite me exclusively so that I stand a chance of answering your questions again. Welcome again!😀






Designing and Implementation of Fiscal Policy
The Keynesian theory relates the total economic spending and the effects it has on the
output and inflation. The Keynesian economic was developed by a British economist, Keynes
during 1930. He was trying to explain and understands the Great Depression. This was to
advise th...

Mrchristma (1577)
Boston College

Top quality work from this tutor! I’ll be back!

It’s my second time using SP and the work has been great back to back :) The one and only resource on the Interwebs for the work that needs to be done!

Thanks, good work

Similar Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors