Q4) Explain what a balanced budget amendment is. What
impact would a balanced budget amendment have on fiscal policy
during a recession? Explain the impact in detail. Are you in favor
of a balanced budget amendment? Provide an economic rationale for
your answer. Remember, the instructor is NOT interested in your
opinion.
a balanced budget amendment is espoused by many in Congress. A
balanced budget amendment would be a law prohibiting the government
from having a budget deficit. While there are many benefits of such
an amendment, this paper is on the drawbacks. What are the
disadvantages and when would they occur? Include a graph.
Explain in detail of the following concepts as related to the
Americans with Disabilities Act: "reasonable accommodation" and
"undue hardship". Use examples to support your answer.
Explain the recent proposals of an explicit balanced budget
amendment in relation to PAYGO. What are the views of supporters
and opponents of these proposals?
A. Explain why a balanced budget amendment could lead to
increased economic instability.
B. Explain why a change in government spending has a
larger effect on GDP than an equal cut in taxes.
C. Explain why GDP is not a measure of social
welfare