Final answer:
The economy can suffer from unemployment or inflation despite the simple guidelines for fiscal policy due to various practical problems and factors. While a balanced budget amendment may promote fiscal responsibility, it may limit the government's ability to respond effectively to economic downturns. The choice of government programs to cut depends on specific circumstances and priorities.
Step-by-step explanation:
The economy can suffer from unemployment or inflation despite the guidelines for fiscal policy being simple due to various practical problems and factors at play. For instance, fiscal policy implementation may face time lags, making it challenging to respond quickly to economic changes. Additionally, discretionary fiscal policies can be influenced by political factors and may not always align with the best economic decisions.
A constitutional amendment requiring the federal government to balance its budget may not necessarily be desirable in all situations. While a balanced budget can promote fiscal responsibility, it may limit the government's ability to respond to economic downturns or emergencies effectively. This can hinder the government's ability to stimulate the economy and reduce unemployment during recessions.
The choice of government programs to be cut in the pursuit of fiscal restraint would depend on specific circumstances and priorities. However, it is important to carefully consider the potential impact on citizens and crucial services. Examples of areas to assess include redundant or inefficient programs, subsidies that may no longer be necessary, and non-essential expenditures.