Teaching Fiscal Policy in the COVID Era: Fiscal Stimulus vs. National Debt

We will examine the benefits of fiscal stimulus versus the costs of increased debt.

Teachers will be able to:

• Describe the immediate benefits of a fiscal stimulus when an economy is in a recession.
• Explain the long-term costs of a fiscal stimulus when an economy is in a recession.
• By comparing the immediate benefits to the long-term costs, decide if fiscal stimulus is warranted during recessions.