Topical This Essay has Two Parts. The first is Fiscal Policy Theory and Implemen

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Topical
This Essay has Two
Parts. The first is Fiscal Policy Theory and Implementation in which
you will discuss how Active Stabilization came to be used and some of
the basics of fiscal policy. The second part involves the practical
side of fiscal policy including economic and political challenges
involved in its implementation and recent examples of its use.
Your essay should
include the following elements:
Part I Fiscal
Policy – Background and Implementation
What economic
circumstances gave rise to the Keynesian approach to understanding
the workings of the economy?
What are the
principal differences between the Keynesian and Classical approaches
to understanding the workings of the economy?
What economic
challenges is Fiscal Policy designed to address?
What are the tools
used in implementing Fiscal Policy?
Part II Fiscal
Policy – Challenges and Practical Application
How is Fiscal Policy
financed?
What are the
challenges inherent in ensuring that Fiscal policy is effective?
What are the
economic trade-offs inherent in implementing Fiscal Policy?
What are the
political challenges inherent in implementing Fiscal Policy?
Describe the recent
ten-year history of Fiscal Policy in the United States (Please use
specific examples).

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