Principles of Economics- Mankiw (5th) 781

Principles of Economics- Mankiw (5th) 781 - CHAPTER 34 F I...

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CHAPTER 34 FIVE DEBATES OVER MACROECONOMIC POLICY 807 QUICK QUIZ: Give three examples of how our society discourages saving. What are the drawbacks of eliminating these disincentives? CONCLUSION This chapter has considered five debates over macroeconomic policy. For each, it began with a controversial proposition and then offered the arguments pro and con. If you find it hard to choose a side in these debates, you may find some com- fort in the fact that you are not alone. The study of economics does not always make it easy to choose among alternative policies. Indeed, by clarifying the in- evitable tradeoffs that policymakers face, it can make the choice more difficult. Difficult choices, however, have no right to seem easy. When you hear politi- cians or commentators proposing something that sounds too good to be true, it probably is. If they sound like they are offering you a free lunch, you should look for the hidden price tag. Few if any policies come with benefits but no costs. By
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