Identify key differences between the private sector and government.

1.       Identify key differences between the private sector and government.

2.       Describe the short-term impacts of increased government spending, and use the multiplier effect to calculate the effect of fiscal stimulus.

3.       Summarize the limitations of using increased government spending to stimulate growth.

4.       Discuss the ways that changes in tax rates affect the economy.

5.       Explain how the budget deficit affects the economy in the short run and in the long run.

6.       Describe the short term impacts of increased government spending, and use the multiplier effect to calculate the effect of fiscal stimulus.

7.       Summarize the limitations of using increased government spending to stimulate growth.

Solution:

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