How Does The Federal Government Implement Its Fiscal Policies?
The federal government implements fiscal policy utilizing its many legislative venues, each State has its own legislators that set fiscal policy for each of their own States, the Federal government has the senate and house to set its fiscal policies with the President approving laws passed by the combined Senate and House of Representatives. The government has implements its fiscal policies via automatic controls and legislative changes. Automatic controls are ones that do not have to be voted on. These policies, such as; unemployment insurance and progressive taxes are already in place and have the most affect on the short-run changes in economic business cycles by dampening the rising or decreasing of income and spending. Whereas the legislative policy changes involving taxes or spending take time to write, be voted on and then implemented. The problem with these policies is the possible over-correction for a temporary fluctuation in the market. For today’s market, I would have chose
