Question

Question

by Antonio Marquez -
Number of replies: 1

So, when an economist predicts that something like aggregate supply and demand will change due to a natural disaster, how often does the American government respond to this and take action to alter the overall outcome?

In reply to Antonio Marquez

Re: Question

by Danny Weaver -
Every politician that remains in office should know that they never let a crisis go to waste. When a crisis happens, and some economists are willing to back up the politicians when it comes to sending out money to act as a stimulus to offset the drop in LRAS or AD, there isn't much political will to stop it from happening - if anything, there is every political reason (pay of interest groups) to let that spending through.