Problem 1.) While deciding that the country is in a recession, what are the three tools of fiscal policy that can alleviate a recession?
Problem 2.) What fiscal policy tools are available to combat inflation within an economy?
Problem 3.) What is the definition of a budget deficit?
Problem 4.) How does a government finance a budget deficit?
Problem 5.) What choices are available for a government with a budget surplus?
Problem 6.) What is the definition of the Multiplier?
Problem 7.) If the Multiplier is 5, what is the impact on GDP in this illustration if government spending (G) increase by $10 billion?