CIPD QUESTIONS

Briefly state and evaluate the problem of time lags in

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Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How might “politics” complicate fiscal policy? How might expectations of a near term policy reversal weaken fiscal policy based on changes in tax rates? What is crowding out effect and why might it be relevant to fiscal policy?

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Briefly state and evaluate the problem of time lags in

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