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Discuss the effect of fiscal policy on inflation

Discussion Post: The Role of Fiscal Policy in the Economy

• Discuss the effect of fiscal policy on interest rates and investment. Explain crowding out effect.

• Discuss the effect of fiscal policy on inflation.

• Discuss the effect of persistent fiscal stimulus on the economy in the long run.

• Describe the mechanism how changes in fiscal policy affect output and prices in the economy.

The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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Microeconomics: Discuss the effect of fiscal policy on inflation

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