**10. Describe the characteristics of fiscal policy from 2000 to 2018.**a. From 2000 to 2004, fiscal policy was (expansionary, contractionary). The cyclically adjusted budget was 1.1 percent in 2000 and moved to -3.2 percent in 2004.b. From 2004 to 2007, the fiscal policy turned (expansionary, contractionary) as the cyclically adjusted deficit fell from -3.2 percent of GDP to -1.2 percent of GDP.c. During the Great Recession from 2007 to 2009, fiscal policy was (expansionary, contractionary). The cyclically adjusted budget was -1.2 percent in 2007 and moved to -7.3 percent in 2009.**Note:** In 2008, the U.S. Congress passed an (emergency spending package) to increase government spending. The $152 billion in spending came in the form of tax breaks for businesses and payments to individuals. This initial stimulus (did, did not) have much effect because households saved a substantial portion of their government payments. In 2009 a significantly larger spending stimulus measure, called the American Recovery and Reinvestment Act of 2009 was passed.d. After the recession officially ended in 2009, the economy (did, did not) rebound as many economists had expected. Unemployment remained high and tax collections low. As a result, fiscal policy remained (expansionary, contractionary). Cyclically adjusted budget deficits were -5.7, -5.6, and -4.3 percent of GDP, respectively, in the years 2010, 2011, and 2012. Fiscal policy has been slowly diminishing, but is still above pre-recession levels.e. In 2017 and 2018, fiscal policy was (expansionary, contractionary). During the years, the cyclically-adjusted deficit rose above ___ % while the economy was under full-employment. Two groups of economists have different views on this fiscal policy. What are the concerns about the economy by the group that opposed the expansionary policy? (Discuss.)---This text captures key fiscal policy shifts between 2000 and 2018, focusing on budget adjustments, the impacts of major legislative actions like the 2008 emergency spending package, and subsequent economic conditions.

since you have asked a multipart question and according to our policy we can only solve the first 3 parts and you can post the question again for the remaining answers.a) expansionary b) Contractionary c) Expansionary; didn't During the 2000-2004, an expansionary fiscal policy where government was spending more than its revenue through deficit financing. it increases the amount of money in the market and spiked the liquidity. Excess liquidity was tackled using a contractionary policy where a conservative outlook regarding spending was adopted. But the recession of 2008 forced the government to provide stimulus to the businesses as people were losing jobs and unemployment rate were increasing.

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10. Describe the characteristics of fiscal policy from 2000 to 2018. a. From 2000 to 2004, fiscal policy was ( expansionary, contractionary ). The cyclically adjusted budget was 1.1 percent in 2000 and moved to -3.2 percent in 2004. b. From 2004 to 2007, the fiscal policy turned ( expansionary, contractionary ) as the cyclically adjusted deficit fell from -3.2 percent of GDP to -1.2 percent of GDP. c. During the Great Recession From 2007 to 2009, fiscal policy was ( expansionary, contractionary ). The cyclically adjusted budget was -1.2 percent in 2007 and moved to -7.3 percent in 2009. Note: In 2008, the U.S. Congress passed an ( _e_ increase government spending. The $152 billion in spending came in the form of tax breaks for businesses and payments to individuals. This initial stimulus ( did, did not) have much effect because households saved a substantial portion of their government payments. In 2009 a significantly larger spending stimulus measure, called the American Recovery and Reinvestment Act of 2009 was passed. P. ) to

10. Describe the characteristics of fiscal policy from 2000 to 2018. a. From 2000 to 2004, fiscal policy was ( expansionary, contractionary ). The cyclically adjusted budget was 1.1 percent in 2000 and moved to -3.2 percent in 2004. b. From 2004 to 2007, the fiscal policy turned ( expansionary, contractionary ) as the cyclically adjusted deficit fell from -3.2 percent of GDP to -1.2 percent of GDP. c. During the Great Recession From 2007 to 2009, fiscal policy was ( expansionary, contractionary ). The cyclically adjusted budget was -1.2 percent in 2007 and moved to -7.3 percent in 2009. Note: In 2008, the U.S. Congress passed an ( _e_ increase government spending. The $152 billion in spending came in the form of tax breaks for businesses and payments to individuals. This initial stimulus ( did, did not) have much effect because households saved a substantial portion of their government payments. In 2009 a significantly larger spending stimulus measure, called the American Recovery and Reinvestment Act of 2009 was passed. P. ) to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The economy is experiencing negative GDP growth and high unemployment. Which fiscal policy action should the government implement in an attempt to fix this problem? A.) increase spending B.) raise taxes C.) increase the reserve requirement D.) decrease interest rates
1. Use the graph below to answer the following questions: BB, (Go. to) BB, (G,. t,) D. 5300 5000 Real Income (Y) 4700 a. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is the structural surplus or deficit? b. In the figure above, if the budget line is BBo and the natural real GDP is $5300, what is the cyclical surplus or deficit? c. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the cyclical budget surplus or deficit? d. In the figure above, if the budget line BB1, the natural real GDP is $5300, and actual real GDP is $5000, what is the structural budget surplus or deficit?
How would I do d?
a) What are the three fiscal policy tools and how would each be used to counter a contractionary gap? b) True or False and explain: Fiscal Policy is effective at reducing the duration of an economic contraction. c) True or False and explain: Households always react to tax changes in a predictable manner.
Always use economic terms, diagrams. "Counter-cyclical fiscal policy works. If consumers and businesses lose confidence because of the changing world, the government can fix this economic problem - that is what the Biden $1.9 trillion stimulus was all about. Sure, there might be some issues with the deficit, but given a recovery, the government can pay that deficit off. Also, since we are in a very inflationary period again we might expect counter-cyclical fiscal policy to resolve some of the debt issues." Please explain this comment. (Hint: don't forget to use an AS AD diagram and possibly a business cycle diagram).
How would I do a and b?