Describe the federal budget, the process that creates it, and a challenge that it faces.
The federal budget is an annual statement of the outlays, tax revenues, and budget surplus or deficit of the government of the United States.
Fiscal policy is the use of the federal budget to finance the federal government and to influence macroeconomic performance.
An ever rising national debt and large fiscal imbalance is a major fiscal policy challenge.
Explain how fiscal stimulus is used to fight a recession.
Fiscal policy can be either discretionary or automatic.
Changes in government expenditure and changes in taxes have multiplier effects on aggregate demand and can be used to try to keep real GDP at potential GDP. ...