Description
Read this article about "fiscal multipliers" and discuss the following. The last line of the article states "policymakers looking for precise estimates are deluding themselves". Do you agree with that or not?
Your response must be 300-500 words. File must be uploaded as an MS Word document or pdf file by 5 PM on Friday November 30. Please feel free to use information from class or other sources (Google searches and reading information online, reading other articles, etc.). Just do not copy someone else's writing or ideas verbatim. That is plagiarism. I reserve the right to run written assignments through plagiarism software (e.g. turnitin.com).
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Explanation & Answer
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Fiscal Multipliers
I strongly agree that policymakers looking for precise estimates are deluding themselves.
A very important point to consider is the fact that the effect of fiscal multipliers in the economy
depends on many different factors. Most importantly, the dependence of the effect of fiscal
multipliers on consumer expectations and perceptions makes it difficult to precisely estimate t...