Unformatted text preview: 4. Can the attempts by the government to make the economy better actually make it worse? Some critics claim that, because of the time lags, stabilization policies are ineffective. Others claim that such policies actually destabilize the economy. They liken the government's attempts to control the economy to a "fool in the shower." 5. What has the government done about the deficit and the debt? Has anything worked? Several efforts to reduce the budget deficit have been attempted by Congress and the executive branch. The Graham-Rudman-Hollings Bill, the Omnibus Budget Reconciliation Act of 1993, and recent attempts to pass the Balanced Budget Amendment are all such attempts. The recent elimination of the deficit, however, came about as a result of prolonged and strong economic growth as much as by any deficit reduction measure....
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This note was uploaded on 09/14/2009 for the course ECON 304L taught by Professor Staff during the Fall '07 term at University of Texas.
- Fall '07
- Fiscal Policy