Question

Prof. Lerner definition of Fiscal Policy​

Answer 1

Answer:

Rules for fiscal policy

Lerner postulated that government's fiscal policy should be governed by three rules: The government shall maintain a reasonable level of demand at all times. If there is too little spending and, thus, excessive unemployment, the government shall reduce taxes or increase its own spending.

Answer 2

Rules for fiscal policy

Lerner postulated that government's fiscal policy should be governed by three rules: The government shall maintain a reasonable level of demand at all times. If there is too little spending and, thus, excessive unemployment, the government shall reduce taxes or increase its own spending.