Fiscal Policy

  1. Automatic Stabilizers vs. Discretionary Fiscal Policy
    1. Automatic Stabilizers
      1. Definition and Function
        1. Mechanisms of Operation
          1. Built-in Responsiveness
            1. Counter-cyclical Nature
            2. Examples
              1. Progressive Income Tax System
                1. Unemployment Benefits
                  1. Welfare Programs
                    1. Corporate Profit Taxes
                      1. Food Stamps
                      2. Advantages and Limitations
                        1. Speed of Response
                          1. Political Feasibility
                            1. Magnitude Limitations
                          2. Discretionary Fiscal Policy
                            1. Definition and Application
                              1. The Role of Legislation and Government Action
                                1. Examples of Discretionary Policies
                                  1. Stimulus Packages
                                    1. Targeted Tax Cuts
                                      1. Infrastructure Spending Initiatives
                                        1. Emergency Relief Programs
                                        2. Advantages and Limitations
                                          1. Flexibility
                                            1. Political Constraints
                                              1. Implementation Delays
                                            2. Interaction Between Automatic and Discretionary Policy
                                              1. Complementary Effects
                                                1. Timing Considerations
                                                  1. Policy Coordination

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                                                5. The Multiplier Effect

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                                                7. Challenges and Limitations of Fiscal Policy