Problem
1. Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced-budget philosophy and the economy moved into a recession. What effects would this philosophy have on the size of the federal deficit?
2. Explain why stabilization policy may be difficult to carry out. How is it possible that stabilization policies can actually be destabilizing?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.