A- Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain
and give examples.
B- Can the government make things worse by intervening in markets? Are there other options outside the markets and government that will fix
macroeconomic failure?
C- "Big government is always harmful to owners of private enterprises, while small government is always good for them." Explain, using examples, why you either agree or disagree with this quotation.