What are government’s fiscal policy options for ending severe demand

1.	What are government’s fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government? A person who thinks the public sector is too large? How does the “ratchet effect” affect anti-inflationary fiscal policy?
Answer» Explanation: the GOVERNMENT's FISCAL policy options for ending severe demand-pull inflation include: REDUCING government spending, increasing taxes, or both. A political business cycle is the concept that: politicians are more INTERESTED in reelection than in stabilizing the economy.

What are government’s fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government? A person who thinks the public sector is too large? How does the “ratchet effect” affect anti-inflationary fiscal policy?

Answer»

Explanation:

the GOVERNMENT's FISCAL policy options for ending severe demand-pull inflation include: REDUCING government spending, increasing taxes, or both. A political business cycle is the concept that: politicians are more INTERESTED in reelection than in stabilizing the economy.

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