The Role for Discretionary Fiscal Policy
S. fiscal policy has been responsive to both cyclical and budgetary conditions. Table 3, Determinants of Discretionary Spending, ˘relates actual year-to-year changes in discretionary spending to the prior yearĂs GDP gap and budget surplus, all relative to full-employment GDP÷ in contrast to just considering changes in forecast spending of a discretionary nature. The table shows that the GDP gap was insignificant, and Auerbach concludes that this indicates a weak relationship, at least at the annual level. He further states that ˘the magnitude and timing of discretionary responses is only part of the story concerning the efficacy of fiscal policy as a tool for macroeconomic stabilization.÷ (Auerbach, 2002, p. 10). He goes on to discuss automatic stabilizers, federal spending and federal tax revenues in particular. He measures the strength of automatic stabilizers by relating the gap ˘between the full-employment surplus and the unadjusted surplus to the contemporaneous gap between GDP and full employment GDP. The coefficient of this relationship indic

 
 
732
3
 
   
 
 
   
    Some topics in this essay  
 
    Discretionary Spending | Fiscal Policy÷ | Hayashi SVAR | Product GDP | Policy÷ Auerbach | fiscal policy | According Auerbach | Retrieved April | Hayashi AuerbachĂs | fiscal policy÷ | Role Discretionary | Discretionary Fiscal | role discretionary fiscal | role discretionary | discretionary fiscal | auerbach 2002 | ˘is role | automatic stabilizers | budget surplus | auerbachĂs article | gdp gap | discretionary fiscal policy÷ | fiscal policy retrieved | retrieved april 2 | policy retrieved april |  
   
 
 
 
   
    Get Better Grades!  
 
   
 
   
 
   
    Saved Papers  
 
    Save your essays here so you can locate them quickly!  
   
 
   
    Testimonials  
 
   
"I enjoy reading other writers papers to get their perspective on things. It makes writing my own paper so much easier."
Cindy A.
 
"I've used this site for 2 semesters and I'll be back next year for sure!"
Liz R.
 
"This site rocks! I got an A thanks to you helping with my writers block."
Sara B.
 
"I was in a real bind and your site helped me to come up with ideas for my paper."
Brian T.
 
"It's nice to be able to find information so quickly and easily."
Jillian T.
 
 
   
 
 
Copyright © 1999 - 2014 CollegeTermPapers.com. All Rights Reserved. DMCA