Discuss the difference between expansionary and contractionary fiscal policy
Discuss the difference between expansionary and contractionary fiscal policy. Also, discuss the various problems associated with using fiscal policy to stabilize an economy. Discuss the social security entitlement program in the US. Why is the program trending towards insolvency and why isn’t it considered a good economic investment for future generations? Define what is meant by progressive, regressive, and proportionate tax income systems. What type of system does the US government use for personal income taxes? Which type of system makes the most economic sense and why? Also, discuss the concept of the Laffer curve. Use a neatly sketched and completely labeled diagram
to support your answer. How is the Laffer curve related to income tax progressivity?
|Academic Level||College (3-4 years: Junior, Senior)|
|Number of Pages||2 Page(s)/550 words|