Competing views on proper role of government in economy. Effects of tax/spending policies, taking into account private agents' response to government actions/ways government officials may use powers. Optimal policies. Applications primarily to U.S. government.prereq: (ECON 1101 or ECON 1165, APEC 1101), (ECON 1102 or APEC 1102), ECON 3101, ECON 3102, MATH 1271 or equivalent courses approved by the Economics Department