Solved: Government spending as stimulative tools, Macroeconomics

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Government spending as stimulative tools

Question 1: Suppose that tuition prices suddenly go up 20 percent. What impact will this single price increase have on the CPI?

Question 2: Consider the recent stimulus package to help the strugling economy. what are the pros and cons of tax cuts or increased government spending as stimulative tools?

Question 3: Suppose the economy is slumping into recession and needs a fiscal policy boost. Voters however are opposed to large fiscal deficits. What should be done?

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Macroeconomics: Government spending as stimulative tools

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