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Author Question: Explain spending caps set by the Budget Enforcement Act. What will be an ideal ... (Read 93 times)

laurencescou

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on: Jun 30, 2018
Explain spending caps set by the Budget Enforcement Act.
 
  What will be an ideal response?

Question 2

Let  represent labor's share of total output. The Solow residual is, therefore, represented by
 
  A) gy.
  B) gA.
  C) gK.
  D) gN.
  E) 1/.


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macmac

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The Budget Enforcement Act imposed constrains on spending. These constraints, called spending caps, were set on discretionary spending for the following five years. These caps were set in such a way as to require small but steady decrease in discretionary spending (in real terms). Explicit provisions were made for emergencies.

Answer to Question 2

B


laurencescou

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Reply #2 on: Jun 30, 2018
Thank you :)


macmac

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Reply #3 on: Jun 30, 2018
Happy to help you


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