Problems with Demand-Side Fiscal Policy - PowerPoint PPT Presentation

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Problems with Demand-Side Fiscal Policy

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Problems with Demand-Side Fiscal Policy Time lag problems Politically vulnerable Can t fight stagflation The stagflation of the late 70 s and early 80 s ... – PowerPoint PPT presentation

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Title: Problems with Demand-Side Fiscal Policy


1
Problems with Demand-Side Fiscal Policy
  • Time lag problems
  • Politically vulnerable
  • Cant fight stagflation
  • The stagflation of the late 70s and early 80s
    led to a new economic approach called
  • Supply-Side Economics
  • Three Features of Reaganomics
  • Cut corporate and personal income tax
  • De-regulated several industries
  • Reduced spending on welfare programs
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