US Fiscal Multiplier Estimates by Economic State (Auerbach & Gorodnichenko, 2012)

International Spillover Effects of Fiscal Stimulus

A government is considering a significant increase in public spending to fund new infrastructure projects. Based on the principle that the economic impact of such spending can vary depending on the prevailing economic conditions, in which scenario would this policy likely generate the largest increase in national output?

Evaluating Fiscal Policy Timing

Rationale for State-Dependent Policy Effects

Evaluating Fixed vs. Cyclical Government Spending

Empirical economic research suggests that a government's decision to increase spending by a specific amount will have a consistent and predictable effect on national output, irrespective of whether the economy is experiencing high or low unemployment.

A government is considering a fiscal stimulus package. Match each economic scenario with the most likely resulting change in national output from a given increase in government spending.

Analyzing a Policy Debate on Fiscal Stimulus

Global Implications of Domestic Fiscal Policy

Empirical studies on the impact of fiscal policy suggest that an increase in government spending will have a significantly ____ effect on economic output when the economy is operating below its potential compared to when it is operating at or near full capacity.

Evaluating Competing Fiscal Policy Advice