Automatic stabilizers vs discretionary spending
January 23rd, 2023
(1) Discuss how Gross Domestic Product is calculated using the expenditure and the income approach. Explain the difference between Real and Nominal GDP.
Research the most recent data for REAL GDP growth in the US (www.bea.gov).
(2) Suppose an economy is going through a Recession -what type of Fiscal Policy needs to be implemented?
How do we understand the difference between Automatic Stabilizers and Discretionary Fiscal Policy?