Implementing Fiscal Policy

Nota:

• Economic problem (recession, etc) must be recognized

1. 2) Legislative
   1. 3) Implementation
      1. 4) Effectiveness
         1. 5) Evaluation
            1. Did it work?
         2. Time needed
      2. Bureaucracies must implement
   2. Congress proposes & Passes a plan

      Nota:

      • As you know, this takes FOREVER

1. Welfare & Transfer programs
   1. More people apply
      1. More $
         1. More spending
            1. Increase AD curve
2. Consumption Smoothing
   1. People dissave

      Nota:

      • Credit Cards help with consumption smoothing
      1. Increase AD