Deliverable Length: 2–3 paragraphs Details: During recent political campaigns, taxes and budget policy were key issues. White House budget packages are often designed to stimulate economic growth. From the library or from www.whitehouse.gov, obtain a current summary of government spending and tax legislation signed by the president. •Write a brief description of the fiscal policy of the United States. •Would you describe it as “expansionary” or “contractionary”? •How can American consumers influence decision makers on fiscal policies? •Explain and discuss if and how this has changed over the past 5 years. Instructor Comments: The DB concerns indentifying fiscal policy See Chapter 29 in Krugman and Wells (2009). One part of the macro theory is essential for understanding taxes and money supply. Changing the level taxes does NOT change the money supply.
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