Fiscal Policy and Stimulus: Crash Course Economics

The video explores fiscal policy, a tool used by governments to manage economic fluctuations. It explains recessionary and inflationary gaps, and how expansionary and contractionary fiscal policies can address these issues. The video discusses Keynesian economics, highlighting the debate over fiscal policy's effectiveness, including concerns about deficit spending and crowding out. It also covers the multiplier effect, showing how government spending can stimulate the economy. The video concludes with a call for support for educational content.

What are the arguments for and against Keynesian economics?

How does the multiplier effect relate to government spending?

What factors can influence the effectiveness of fiscal policy?

In what ways can fiscal policy impact consumer confidence?