10. Compare and contrast the different forms of fiscal policy. Expansionary Fiscal Policy Contractionary Fiscal Policy Government Spending Taxes Aggregate Demand National Debt Economic Growth Inflation Employment
Q: it borrows money from the public by issuing bonds. interest payments on the existing debt increase.…
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Q: What is the primary goal of fiscal policy? A. Maintaining price stability B. Achieving full…
A: Fiscal policy is a basic part of an administration's financial administration toolbox. It includes…
Q: If the economy is in stagflation, what would eventually happen as a result if no fiscal policy is…
A: Stagflation refers to the economic condition where the inflation and stagnation both exist…
Q: 40. Which of these would help a government fight a recession? raising taxes cutting taxes cutting…
A: The objective of this question is to identify which of the given options would be most effective in…
Q: Which of the following is a way to finance a fiscal deficit? Select one: a. Indirect taxes. b.…
A: The fiscal deficit occurs when the government's expenditure is greater than the government's…
Q: ncrease transfer payments B) increase government purc ncrease consumption taxes D) increase interest…
A: As per general equilibrium models in contemporary macroeconomics, expansionary fiscal policy could…
Q: 3) A decrease in taxes should be applied in a situation with a recessionary gap. an inflationary…
A: An inflationary gap, also known as an inflationary output gap, is an economic concept that…
Q: Give a brief definition of fiscal policy? What are its economic goals? Fiscal policy is the use…
A: Answer: Definition of fiscal policy: Fiscal policy is a policy of government wherein the government…
Q: 2. When the government runs a fiscal deficit, it finances it by: a. issuing stocks…
A: When a government's income falls short of its expenditures, a fiscal deficit results.A government…
Q: 1. The economy starts out with a balanced Federal budget. If the government opts to implement…
A: Fiscal policy refers to the policy of the government to control the money supply in the economy.…
Q: 12. The national debt in the current year is a. equal to the national debt at the beginning of the…
A: Debt alludes to a kind of financial responsibility or liability that generally arises or rises when…
Q: Question: Which of the following fiscal policy tools involves the government spending more money…
A: The correct answer is:a) Expansionary fiscal policyExpansionary fiscal policy involves the…
Q: 5. Concerns about the national debt Which of the following concerns about the national debt are…
A: National debt refers to the total amount of all debts owed by the government of a country. It comes…
Q: 1. The data in the following table represents budget figures for the nation of Harmonia for 2016.…
A: The budget deficit = Government expenditure - Government revenue Primary deficit = Budget deficit -…
Q: nary G
A: Full employment refers to situation where AD is equal to AS at potential output level. Equilibrium…
Q: 2. If a government runs a budget deficit of $10 billion dollars each year for ten years, then a…
A: * ANSWER :- * (2) as based on given data ,
Q: 7. Non-discretionary fiscal policy designed to counteract a reduction in aggregate demand might…
A: A non-discretionary fiscal policy refers to the government action or policy thay acts to deal with…
Q: Question: Expansionary fiscal policy is characterized by: A) Increased government spending and/or…
A: Expansionary fiscal policy aims to stimulate economic growth and demand by increasing government…
Q: How Reagan Would Fix economy Many Republicans look at Reagan's policies in the early 1680s and…
A: Laffer Curve is a theory suggesting an optimal tax rate exists that maximizes government revenue.…
Q: 1. The cyclically adjusted surplus as a percentage of GDP is 1 percent in year 1. This surplus…
A: Gross domestic product refers to the market value of final goods and services that are produced…
Q: Government Tax Revenues Spending $ 450 Year GDP 1 $ 425 $ 2,000 2 500 450 3,000 3 600 500 4,000 4…
A: Government planned their Budget , one part is revenue and one part is expenditure , so here we…
Q: Describe the characteristics of fiscal policy in the Great Recession. Was it expansionary or…
A: The Great Recession was a severe economic downturn that began in December 2007 and ended in June…
Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…
A: Fiscal policy refers to government actions that result in a change in the level of economic activity…
Q: 10. Describe the characteristics of fiscal policy from 2000 to 2018. a. From 2000 to 2004, fiscal…
A: since you have asked a multipart question and according to our policy we can only solve the first 3…
Q: 2. Fiscal policy Suppose a hypothetical economy is currently in a situation of deficient aggregate…
A: Given: Deficient aggregate demand=64 billion Economist A: Government spending multiplier=8, Tax…
Q: 4. In the twentieth century, fluctuations in real GDP were Group of answer choices -less severe…
A: In the twentieth century, fluctuations in real GDP were: less severe during the last 50 years than…
Q: iscal policy affects aggregate demand because: government spending is a category of aggregate…
A: Fiscal policy involves the use of taxes, government spending, and transfer payments to promote…
Q: 9. An uncapped dollar-for-dollar federal matching grant may be mor efficient than a federal block…
A: Uncapped means not covered as with a cap and matchings grants in the simplest terms are grants that…
Q: Discuss Expansionary Fiscal Policy. Who is responsible for implementing fiscal policy? What may be…
A: Policies are created by the government in order to keep the economy on track and ensure economic…
Q: Question: Which of the following is an example of a fiscal policy that has no inside lag? a- A…
A: Fiscal policy- there is a change in government expenditure and taxes to impact the money supply.…
Q: 5 Which one of the following statements regarding fiscal policy and the budget is correct?(a) When…
A: Fiscal Policy: This is regarding government policy. Under this policy, the government uses tools…
Q: government finances the deficit by issuing bonds, what amount. billion percent rate of interest, how…
A: Debt describes to an obligation or liability that happen when one party, known as the debtor,…
Q: Crowding out effect refers to government fiscal policy tools affecting _____? A. private spending B.…
A: Crowding out is the elimination of spending of some private spending due to increase in public…
Q: 2. The U.S. economy is in recession and has a large recessionary gap. Describe what automatic fiscal…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What does an increase in the income tax rate illustrate? An increase in the income tax rate is an…
A: What does an increase in the income tax rate illustrate? In general, [income] tax rate increases…
Q: ocial Security and Medicare create a fiscal gap because _______. A. the benefits today exceed…
A: Fiscal gap refers the difference between government expenditure and government revenue
Q: During a recession, if counter-cyclical fiscal policy were implemented we would expect the…
A: Fiscal policy refers to changes in government spending and taxes.
Q: Which of the following is not a category of fiscal policy? government policies regarding the…
A: Fiscal policy refers to change in government spending and/or taxes to affect real GDP in the…
Q: Describe the fiscal interdependence of the various levels of government in the U.S. How do the…
A: Fiscal interdependence refers to the interconnection of economic policies and fiscal decisions…
Q: Suppose that the Office of Management and Budget provides the accompanying estimates of federal…
A: Deficit as percentage of GDP = (Deficit / GDP) * 100
Q: Suppose you are the economic policy adviser to the president and are asked what should be done to…
A: Fiscal deficit is the excess of government income over revenue earned. In this scenario, the…
Q: Fiscal Policy and how it can be implemented in a recessionary gap. Recently, COVID-19 has…
A: As we know that Pandemic pushed the many economy years back almost all countries . There growth rate…
Q: 19. Gross investment is the total amount spent on purchases of new capital and on replacing…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
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- 2) Transfer payments are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 3) Personal taxes are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 4) A government's debt is increased when it A) balances is budget. B) buys more bonds. C) runs a deficit. D) runs a surplus. 5) When a government runs a surplus A) its debt increases. B) it must raise taxes. C) its debt decreases. D) it must cut spending. 6) The amount the government owes to the public is the federal debt. 7) If tax receipts are greater than government expenditures the government is running a surplus. 8) If the government runs a surplus, then the government debt increases. 9) Transfer payments are the largest part of the U.S.…1. Why is a $100 billion increase in government spending on goods and services more expansionary than a $100 billion decrease in taxes?1. The Multiplier and Fiscal Policy: one of the programs to combat the economic effects of the recession and pandemic was the CARES Act passed in March 2020. One of the provisions of the CARES act was a relief check of $1200 per adult and $500 per dependent child. These payments were actually advance rebates on 2020 taxes and so the payments came from the IRS. This tax cut distributed about $300 billion to most, but not all of the U.S. population. Major exceptions included families with undocumented members (which invalidated the whole family, even those who were legal residents or U.S. citizens), dependent adults (which invalidated many college students as well as seniors living with their children). The program was phased out for individuals making more than $75,000 and married couples earning more than $150,000. Which of the following statements is correct about the multiplier effect of this part of the CARES act? Group of answer choices The multiplier effect would be greater than…
- 9. Make a graph showing the spending and tax revenue of your state government for as many years as you can find (use the government of your home country if you are not from the United States). What trends do you notice? What spending categories make up the largest share of the state budget? What are the largest sources of revenue? ePart A Decide whether each of the following fiscal policies of the federal government is expansionary or contractionary. Write expansionary or contractionary, and explain the reasons for your choice. 1. The government cuts business and personal income taxes and increases its own spending. Expansionary. The decrease in personal income taxes increases disposable income and thus increases consumption spending. The business tax cut increases investment spending, and the increase in government spending increases government demand. 2. The government increases the personal income tax , Social Security tax and corporate income tax Government spending stays the same 3. Government spending goes up while taxes remain the same. 4. The government reduces the wages of its employees while raising taxes on consumers and businesses Other government spending remains the same12. The national debt in the current year is equal to the national debt at the beginning of the year minus the annual budget deficit. a. b. equal to the national debt at the end of the year plus the annual budget deficit. equal to the national debt at the beginning of the year plus the annual budget deficit. C. d. none of the above. H. I
- CIENCES QUESTION 1 Study the bar chart regarding the National Budget's tax revenue and answer the questions that follow: WHERE WILL THE MONEY COME FROM IN 2021/22 AND HOW WILL IT BE SPEND GOVERNMENT SOURCES OF REVENUE 2021/22 Tax R1 365.1milj 72.6% Loans R 482.6milj 25.7% Non-tax income R 32.5milj 1.7% 1 Which revenue contributes the most to the National Budget? Give the percentage. Which revenue contributes the least to the National Budget? Give the percentage. Give ONE example of a income that is not tax. TAX REVENUE, 2 021/22 Personal inseme tax9. The lag associated with fiscal policy can: magnify economic fluctuations. stimulate output beyond full employment. depress output below full employment. all of the above.(i) Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one will be the biggest figure? Explain your reasoning. Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain your reasoning. (ii)
- One of the major differences between the liberal and conservative political ideologies in the United States is theirview on how active of a role the government should take regarding fiscal issues. Develop an argument about theextent to which the government should take an active role in the marketplace.10. Legislative lags associated with fiscal policy are due to all of the following, except: the political infighting involved in approving changes in government spending or taxes the poor and conflicting data available to policymakers. the delays in assessing the real state of the economy. the forecasting deficiencies of econometric models.4. Study Questions and Problems #4 Evaluate the following statement. True or False: The most unlikely problem of the national debt is that the government will go bankrupt. True, because the government surplus is always growing. True, because the U.S. Treasury can roll over the debt by issuing new securities. False, because when government securities mature, the U.S. Treasury will default on its obligations. O False, because the government deficit is always growing.