1. Which of the following is a major area of disagreement between activists and nonactivists? Group of answer choices -Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree. -Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree. -Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag. -Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree.   Which of the following is correct?

Q: 7. Use of discretionary policy to stabilize the economy Should the government use monetary and…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: 6. A reduction in government expenditure or an increase in taxes is defined as: 1. expansionary…

A: We know that Expansionary policy is employed with the aim of boosting aggregate demand when private…

Q: T5

A: In an economy, when any of the economic policy is implemented to deal with market condition, there…

Q: Consider the following data for Country A and Country B. Country A 2.2% 80% 5% Primary Budget…

A: Fiscal stabilization refers to actions taken by a government to ensure its finances are in a stable…

Q: 8. Using policy to stabilize the economy The government has the ability to influence the level of…

A: The government has various policies to balance the economic activities. Imbalances in these economic…

Q: 12. Using fiscal policy to fight inflation Consider the hypothetical economy depicted on the graph.…

A: Full employement level prevails at : Price level = 110 & Real GDP = $780 billionIn the initial…

Q: The graph below depicts the aggregate demand and aggregate supply curves for the real economy. We…

A: Output gap measures the difference between the actual output and the expected output. The economy…

Q: Consider a hypothetical economy in which households spend $0.50 of each additional dollar they earn…

A: Marginal Propensity to Consume (MPC) is defined as the proportion of an aggregate increase in pay…

Q: 1. If the government is required to balance the budget and the economy falls into a recession, which…

A: 1. If the government is required to balance the budget and the economy falls into a recession, the…

Q: 9. Use of discretionary policy to stabilize the economy Should the government use monetary and…

A: The contractionary policy must be used as economy is experiencing expansionary gap. It will shift…

Q: 1. The government's tax revenue increased by 10.3% from PhP 1,217,663 million in 2020 to PhP…

A: Tax increase or decrease in spending: Contractionary fiscal policy Tax cuts pr increase in…

Q: 2 - D please

A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…

Q: If the U.S. Congress passes legislation to raise taxes to control inflation, what kind of policy is…

A: Fiscal policy is the policy used to change the aggregate demand by the change in government spending…

Q: 14) The relationship between monetary policy and the time it takes for policy to change spending is…

A: The monetary policy is the policy of the monetary authority of the economy regarding the money…

Q: 7. Use of discretionary policy to stabilize the economy Should the government use monetary and…

A: The stability of the economy is a crucial concern for governments around the world. During periods…

Q: Nominal interest rate (percent per year) Nominal interest rate 7.0 (percent) 6.0 5.0 4.00 4.0 MS…

A: Here, the given graph shows the money demand curve and money supply curve in the money market.

Q: 55)If the real GDP and Price level both decreased, the following must have occurred: Select one: a.…

A: In contractionary fiscal policy, the government cut down the expenditure or increases the tax. A…

Q: .When an economy has an aggregate expenditure of $150 billion and the real GDP of $140 billion, then…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 7. Use of discretionary policy to stabilize the economy Should the government use monetary and…

A: Discretionary policy is a macroeconomic policy that is chosen by policymakers' judgement in the…

Q: 11) Fiscal policy is determined by A) the Federal Reserve. B) the president and the Federal Reserve.…

A: Fiscal policy is the policy set up by the government to use the revenue generated by taxes.

Q: 4. Which factor is NOT a tool of fiscal policy? (Select All that Apply) A. changing the tax rates B.…

A: As there are multiple separate questions answer is provided to the first question i.e. question 4.…

Q: 1. A fiscal expansion coupled with a monetary expansion must always cause a) Output to rise b)…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Column A: Objective for Aggregate Demand Write increase or decrease if you wish to increase or…

A: From the above table shown, we have to give correct answers in the column shown above by assuming…

Q: 8. Using policy to stabilize the economy The government has the ability to influence the level of…

A: A subfield of economics known as macroeconomics studies the economy as a whole at the aggregate…

Q: 4. What is the different between Monetary Policy and Fiscal Policy? Short answer

A: (Q) What is the difference between Monetary Policy and Fiscal Policy? Short answer

Q: how the main instruments of macroeconomic policy, namely monetary and fiscal policy, are implemented…

A: The fiscal policy would result in the policy involved with the taxes, government expenditure and the…

Q: f Congress and the president decide an expansionary fiscal policy is necessary, then they should…

A: Fiscal policy is related to government spending and taxes. Fiscal policy is a policy in which the…

Q: None

A: Step 2MPC is given MPC=0.5Multiplier=1/1-MPCMultiplier=1/1-0.5=2When the government increases its…

Q: 1. Given the discussion of the effects of fiscal policy in this​ chapter, if the central bank does…

A: Fiscal policy refers to the use of government disbursement and tax policies to influence economic…

Q: POTENTIAL GDP     REAL GDP          PRICE LEVEL 2020  $1500 billion $1500 billion 100 2021  $1590…

A: Potential GDP is the level of GDP when the economy utilizes its resources fully, that is the economy…

Q: 3. What are major assumptions of classical economics? Explain briefly item by item and make a…

A: Since you have posted multiple questions, we will provide the solutiononly to the first question as…

Q: Answer all questions. For each question, identify the statement as True, False, or Uncertain, and…

A: Fiscal policy: It refers to the policy that is used by the government to help the economy. The…

Q: a. Which of the following are considered limitations of fiscal policy? Instructions: In order to…

A: In an economy, when any economic policy is implemented to deal with the market conditions, there are…

Q: According to the Congressional Budget Office (CBO) federal debt that is high.and risiog.as a…

A: 3. According to Congressional Budget office, federal Debt that is high and rising as a percentage of…

Q: Fiscal and Monetary Policy scenarios. For each scenario explain the standard Keynesian…

A: Monetary policy and fiscal policy are two main policy measures to achieve the long term and short…

Q: 9. Use of discretionary policy to stabilize the economy Should the government use monetary and…

A: The economy is producing natural rate of output at long run aggregate supply curve.

Q: 10. In order to close an inflationary gap, the government needs to implement which of the following…

A: An inflationary gap, also known as an expansionary gap, refers to the situation in an economy where…

Q: Suppose that in April the government undertakes the type of policy that is necessary to bring the…

A: The two sorts of adjustment strategies the Fed utilizes are expansionary monetary policy and…

Q: 150 SRAS AD 130 110 SRAS 90 AD 70 LRAS 50 20 22 24 26 28 30 OUTPUT (Trillions of dollars) PRICE…

A: If the government decides to intervene to bring the economy back to potential output, then it would…

Q: For questions 34-39 choose whether each is an example of: fiscal policy a. discretionary b.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Explain each of these statements supported by reasonable reasoning: 1. Credibility is important…

A: When product is manufactured, cost  takes place along with revenue, which results into profit and…

Q: 7. Use of discretionary policy to stabilize the economy Should the government use monetary and…

A: Discretionary policy is a macroeconomic policy that is chosen by policymakers' judgement in the…

Q: If the government announces that it has increased the corporate tax rate from 25% to 35% and the…

A: Taxation is an instrument of the fiscal policy.