14. Since the 1960s, macroeconomists have become more aware Group of answer choices -that increases in government expenditures are more effective than tax reductions as a source of economic stimulus. -that  persistent inflation will reduce the unemployment rate. -of both the potential and the limitations of fiscal and monetary policy as stabilization tools. -of the fact that fiscal policy is more potent than monetary policy.   Which is correct?

Q: At the time of the Great Depression, fiscal and monetary policy were not well understood. Booms and…

A: With enough careful planning, fiscal and monetary policy can prevent recessions.False - While…

Q: Which fiscal policy would work the most quickly to affect aggregate demand? infrastructure…

A: The policy that is related to  government spending and taxes is known as fiscal policy. The policies…

Q: T5

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

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…

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

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Q: 18. When using fiscal policy to smooth out business cycle fluctuations, the government should: Raise…

A: Fiscal policy is the use of government spending and taxation to influence the economy. It is one of…

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: One argument often heard against using fiscal policy to tame the business cycle is that the lags…

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Q: Determine how each of the following monetary or fiscal policy would shift the aggregate demand…

A: a. Assuming the economy is currently producing above the full employment output, the government…

Q: Which of the following will cause the structural budget deficit to increase? Select one: A. an…

A: Budget deficit refers to the the excess of government expenditure over government revenue. The main…

Q: Suppose the US Federal Government decides to engage in deficit spending whereby it increases its…

A: B) The price level increases above its initial level in short-run and further increases over the…

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: Supply-side economics is the school of thought that advocates the use of A monetary policy to…

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

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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: 4. Using Benefit-cost ratio, find out the best alternative for i=10% and n=30 years. Capital…

A: Note: “Since you have posted multiple questions, we will provide the solution only to the one…

Q: please answer the following question: 1. Suppose an economy is slowing and more and more people…

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

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

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Q: 14. During a period when economic growth is very strong and inflation rates are rising to…

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

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: Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

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: 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: SRAS PL2 PL AD, AD Y, Y2 REAL GDP he Aggregate Demand Model shows an increase in ggregate Demand or…

A: In the given model Aggregate Demand is increasing. In an Expansionary Fiscal Policy, AD increases…

Q: from the news article…

A: Aggregate demand is the total demand of all the goods and services produced in an economy. Aggregate…

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: Given all the complications that can result wwith fiscal policy, is fiscal policy still considered…

A: Lets just first understand  the concept of Sustainability Policy. The stabilization goal aims to…

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: Q.1.18 The implementation lag is for monetary policy and for fiscal policy. (1) Extremely short;…

A: An implementation lag occurs when there is a delay between the duration of beginning of an economic…

Q: Explain the interaction of monetary policy and fiscal policy at full employment

A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…

Q: Explain the difference between fiscal policy and monetary policy. Explain also 2 advantages and 2…

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Q: 33. If an Economy is producing below Potential GDP, the correct form of action is: A. Expansionary…

A: An economy is considered to have an output gap if it is producing less than it could be. The output…

Q: no handwritten notes!

A: ViewpointsClassicalKeynesianMonetaristExpansionary fiscal policy is either an unnecessary or…

Q: 07. What factors make an expansionary "stimulus" fiscal policy effective? One answer     a) A…

A: The fiscal policy refers to a policy which is used to influence the aggregate demand in the economy.…