Fiscal Policy and its Effect on Aggregate Supply and Aggregate Demand Paper
This assignment is intended to help you learn to do the following:
Identify major policy options for macro government intervention.
Define fiscal policy and describe its importance.
Illustrate what the multiplier is and how it works.
Explain how fiscal stimulus or restraint is achieved.
Overview
Review the section of your text that covers fiscal policy and its effect on aggregate supply and demand. In
addition, find and read two recent articles on this topic. Write a 500-750 word (approximately 2 to 3 page)
paper that addresses these questions:
What options does the government have regarding fiscal policy?
How has the use of these policies changed over time?
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