Answer the following key problem from the chapter on Fiscal Policy, which is based on our discussion in class:
a. Explain the problem of time lags in enacting and applying fiscal policy.
b. What is the difference between the national debt and a budget deficit?
c. How does the crowding-out effect relate to fiscal policy?
d. What is the difference between expansionary and contractionary fiscal policy?
e. During the 2012 election year, how did President Obama create a political business cycle?