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One key feature of the Covid-19 recession is that public health considerations meant that the ...

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One key feature of the Covid-19 recession is that public health considerations meant that the ...

One key feature of the Covid-19 recession is that public health considerations meant that the government wanted certain parts of the economy (i.e., the ones most likely to spread the virus) to shut down and people to avoid spending there (e.g., restaurants and travel). All else equal, how would we expect these deliberate lock-downs to affect the fiscal multiplier of any fiscal policy?

▸ Have no effect initially but then increase

▸ No effect

▸ Increase

▸ Decrease

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 76 times

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spiderman13 Author

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Good timing, thanks!

Brownr40

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this is exactly what I needed

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Just got PERFECT on my quiz

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