Unit 6 Discussion

After reviewing the unit materials, please post and respond to the following topics on the course discussion board. Feel free to start your own related posts and respond to other students' postings as well.

How does a budget deficit differ from the national debt? What are the types of lags encountered when using fiscal policy? Which of the types do you think is the most realistic? Explain your reasoning. Explain some consequences of pursuing a balanced budget during a severe economic contraction and its implication for the size of a multiplier of your choice.