Reply to each question with at least 138 words reply 1. Marvin and Group 1, if we look at the federal government budget over the past 45 years we see that most years the budget has been in deficit. During a recession, unemployment benefit payments increase without the need for any government action, which is one example of an automatic fiscal policy. What are some other examples? REPLY 2.Elizabeth and Group 1, it is important to remember that fiscal policy is the use of the federal budget to achieve full employment, control inflation, and stimulate economic growth. The changes to the federal budget can be made through increases or decreases in government spending or through increases or decreases in tax revenues. Have we received any good or bad news about the state of our economy as a result of fiscal policy in light of COVID-19?
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