Please answer the following questions: 1. Discretionary fiscal policy is the direct result of deliberate actions by policy makers rather thanan automatic adjustment.A. TrueB. False2. Discretionary government spending is an automatic stabilizer.A. TrueB. False3. Fiscal policy refers to the:A. changing the money supply to impact the economy.B. policies to positively impact the environment.C. policies design to achieve a balanced budget.D. manipulation of government spending and taxes to stabilize domestic output, employment,and the price level.E. manipulation of government spending and taxes to achieve greater equality in the distributionof income.4. Which factor is NOT a tool of fiscal policy?(Select All that Apply)A. changing the tax ratesB. government purchases of goods and servicesC. changes in the money supplyD. changes in the interest rate to affect the moneysupply5. A contractionary fiscal policy is one that reduces aggregate demand by decreasing:A. government purchases.B. the money supply.C. interest rates.D. taxes.6. If the economy exhibited an inflationary gap, the government should follow a(n)which would shift the AD curve to theA. expansionary; rightB. contractionary; rightC. expansionary; leftD. contractionary; leftpolicy, 14. The economy starts out with a balanced Federal budget. If the government opts to implementexpansionary fiscal policy, then there will be a:A. Trade deficitB. Trade surplusC. Budget deficitD. Budget surplusE. Balanced Federal Budget15. As the economy declines into recession, the collection of personal income tax revenuesautomatically falls. This relationship best describes how the progressive income tax system:A. serves as a discretionary fiscal policyB. have no effect in the economyC. will help discourage spendingD. converts a recession into a depressionE. serves as an automatic stabilizer for the economyMATCHINGWith regards to time lags (shortcomings of discretionary fiscal policy), match the following:16. Recognition Lag17. Administrative Lag18. Operation LagA. the time it takes for discretionary fiscalpolicy to impact the economy.B. start of the recession and the time it takesto recognize that the recession has started.C. the time the need for the fiscal action isrecognized and the time that the action istaken.

Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

1. Discretionary fiscal policy is the direct result of deliberate actions by policy makers rather than an automatic adjustment. A. True B. False 2. Discretionary government spending is an automatic stabilizer. A. True B. False 3. Fiscal policy refers to the: A. changing the money supply to impact the economy. B. policies to positively impact the environment. C. policies design to achieve a balanced budget. D. manipulation of government spending and taxes to stabilize domestic output, employment, and the price level. E. manipulation of government spending and taxes to achieve greater equality in the distribution of income.

1. Discretionary fiscal policy is the direct result of deliberate actions by policy makers rather than an automatic adjustment. A. True B. False 2. Discretionary government spending is an automatic stabilizer. A. True B. False 3. Fiscal policy refers to the: A. changing the money supply to impact the economy. B. policies to positively impact the environment. C. policies design to achieve a balanced budget. D. manipulation of government spending and taxes to stabilize domestic output, employment, and the price level. E. manipulation of government spending and taxes to achieve greater equality in the distribution of income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money in GE stock. Suppose she decides to sell the stock today so she can purchase her first home. The sale price of the stock is $64,500. Suppose that at the beginning of the ten year period the Consumer Price Index (CPI) was 125 and today the CPI is 215. Use this information to determine the difference between the initial investment in today's dollars and the sale price.
2
What is the size of the out of the labor force population in an economy that the number of employed persons in a country equals 30 million, the number of unemployed persons equals 4 million, and the number of persons over age 16 in the population equals 40 million? (Example: If answer is 10 million, just write 10). Type your numeric answer and submit
The following table shows the annual inflation rate (the GDP deflator) of Japan, the UK, China, and South Sudan in the period 1996-2015 (Source World Bank 1996-2000 2001-2005 2006-2010 2011-2015 -1.9% -0.9% Japan UK -0.5% 1.6% 2.1% 1.7% 1.8% 1.8% China 8.1% 2.4% 2.1% 0.8% South Sudan 54.1% 6.5% 0.6% -18.7% Based on this information, which of the following statements is correct? O In Sudan Price level has always decreased between 1996 and 2015 The general price level decreased in China between 1996 and 2015 O China experienced disinflation between 1996 and 2015 O in the UK, the price of goods and services remained stable between 2001 and 2015
K04
What is the Inflation factor?
What would $30,000 earned in 1995 be equal to in 2011? The CPis for the two years are 152.4 and 223.47, respectively.
X.The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow. Goodland Economy 2017 and 2018 Price 2017 (Base year) Production Price 2018 Price per Unit ($) Production Price per Unit ($) 55,000 tem Rice ('000 tons) Wheat (000 tons) Tractors mid-size (units) Cotton (000 tons) Used cars ('00) Manufacture garments (000 tons) Eggs (000 Trays Coca Cola ('000 litres) Pepsi Cola ('000 litres) Beef (000 tons) Second hand cloths (000 tons) Alcoholic Beverages ('000 litres) Milk ('000) 50,000 100,000 1.50 2.00 23,000.00 2.00 98,000 45,000 2.50 24,500.00 50,000 120,000 5,000 150,000 110,000 6,000 100.00 120.00 5,000.00 7,000.00 50.00 145,000 70.00 2,000 6,000 2.50 3.50 2,300 6,500 0.80 1.20 700 1.10 850 1.50 5,000 500 500 7,000 6.50 4,800 8.50 15.00 450 25.00 3.25 600 3.75 2.30 7,500 2.50 Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and…
Calculate Price level (two decimal places) MD=(.67Y-5r)P MS= 100 Y= 150 r= -6
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut, and one newspaper. In year one, the basket costs $6.00. In year two, the price of the same basket is $7.00. From year one to year two, there is at an annual rate of . In year one, $12.00 will buy baskets, and in year two, $12.00 will buy baskets. This example illustrates that, as the price level rises, the value of money .
The nominal value of any economic statistic refers to the number that is actually announced at that time, while the ________________ refers to the statistic after it has been adjusted for inflation. empirical value adjusted value real value net value
In October 2015, amid rising fears about the security of credit card transactions, financial institutions and businesses made the transition to using chip cards. Unlike the quick swipe of a magnetic stripe on the back of traditional credit and debit cards, chip cards have to be left inside the terminal while the embedded chip verifies the transaction. While there is no consistent method for measuring transaction speed, news agencies report average chip speeds of anywhere from 8 seconds to 13 seconds. The switch to chip readers was precarious, with many businesses taping over the chip card slots in the terminals until the kinks were worked out. Even after a year, some businesses still could not process chips and continued to utilize the magnetic stripe for transactions. Financial institutions thought the additional security benefits of the chips would overshadow the added wait times. Yet a survey conducted by Harbortouch, a leading point-of-sale company, in 2016 showed that nearly four…