Q: What is meant by fiscal policy? How far can it be used to ensure, a high level of employment?
A: In a market economy, decisions are taken by the market forces and the government has limited…
Q: Which fiscal policy would be the most contractionary? a $100 billion decrease in government spending…
A: The fiscal policy represents the use of government spending and taxation. To foster strong and…
Q: A contractionary fiscal policy shifts the aggregate demand curve leftward. true or false?
A: Fiscal Policy: It refers to the decision of the government regarding spending and taxation.…
Q: State any two objectives of fiscal policy?
A: According to the given question Gradually we can say that fiscal policy always leads to the…
Q: fiscal policy
A: The fiscal policy (FP) is a tool in hand of government to regulate and control the economic…
Q: olicy"
A: Resource mobilization is the process of receiving resources from the resource provider with use of…
Q: how to reduce the debt gdp ratio for macro
A: The debt-to-GDP proportion is the measurement contrasting a country's public debt with its (GDP).
Q: fiscal policy
A: There are two policies which go hand in hand to regulate or stimulate the economy. The monetary…
Q: Will a discretionary fiscal policy action that involves spending $100 billion have the same overall…
A: The discretionary fiscal policy refers to changes in the tax rate or the level of government…
Q: Calculate fiscal deficit when Borrowings is $15,000 and the interest is $600
A: # Fiscal deficit is the difference between total expenditure and total receipts or spending of the…
Q: Define what is 'automatic stabiliser' in fiscal policy, and provide 2 examples
A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…
Q: How will a contractionary fiscal policy affect a budget deficit? A.) Debts will…
A: Budget deficit refers to the amount of expenditure of a government that surpasses/exceeds the total…
Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…
A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…
Q: What are the three fiscal policy tools and how would each be used to counter a contractionary gap?
A: Fiscal policy tools are the revenue and expenditure tools of the government undertaken to accomplish…
Q: If the economy is producing in the intermediate zone of the ad/as would you suggest discretionary or…
A: The government of the country takes the help of fiscal policy measures to maintain balance in the…
Q: Real GDP Which fiscal policy action MIGHT the government take to move the economy from Point A to…
A: Fiscal policy is the policy in which government either change his spending or change tax levels for…
Q: DYNAMIC TAX SCORING—WHAT IS IT, AND WHO WANTS IT? Go to www.google.com and search for information on…
A: Dynamic scoring is an apparatus to give individuals from Congress the data they have to assess the…
Q: f an increase in government spending is accompanied by a reduction in spending by firms and…
A: The GDP or the gross domestic product is defined as the value of all final goods and services newly…
Q: A government increases the corporate tax rate from 15 to 17% in an economic recession. Fiscal policy…
A: Fiscal policy can be of two types, procyclical and anticyclical.
Q: T F Fiscal policy determines the level of interestrates.
A: Fiscal policy refers to the taxation and expenditure decisions of the government that influences a…
Q: Which kind of economic fiscal policy measures do you recommend at the current economic situation…
A: Stagflation is defined as a period of poor economic development and relatively high unemployment—or…
Q: How fiscal policy influences aggregate demand?
A: Aggregate demand refers to the overall demand for commodities and services in an economy during a…
Q: What is fiscal imbalance? Fiscal imbalance is the _______ value of the government's commitments…
A: What is the fiscal imbalance? Fiscal imbalance refers to a situation where all of the government's…
Q: What will be the primary deficit if the fiscal deficit is 320 and the interest payment by the…
A: The variable that captures the borrowing requirements of the government other than the obligation…
Q: Which of the following would be classed as an expansionary fiscal policy? An increase in the money…
A: An expansionary fiscal policy is a policy from government to expand aggregate demand without any…
Q: What do you understand by the term Fiscal Policy?
A: Fiscal policy is a way through which the US government adjusts its Expenses and tax rate depend on…
Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…
A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…
Q: Should the government fight recessions with spending hikes rather than tax cuts ? Explain
A: Government spending and tax reductions have different multiplying effects on the economy.
Q: model of an economy with the following equa Yd he fiscal policy multiplier with respect to incon
A: *Answer:
Q: 01. Which ff the following reasons why fine-tuning the economy is not likely to be successful, is…
A: In an economy, there are different types of economic lags that may arise when government tries to…
Q: What is fiscal multiplier?
A: Formula for fiscal Multiplier is Fiscal Multiplier=11-MPC where MPC is marginal propensity to…
Q: Identify the effects of fiscal policy on the economy
A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…
Q: The U.S. is in a recession due to decreased Aggregate Demand in the economy. Should the government…
A: When there is a financial crisis in the economy or a rise in interest rates, fall in the prices of…
Q: How can fiscal policy eliminate GDP gap
A: Fiscal policy refers to how the government uses spending and tax policies to influence economic…
Q: Show effect of expansionary fiscal policy in the short run and medium run. AS AD model using ISLM…
A: The aggregate demand is the downward sloping curve which sows the aggregate demand for all the goods…
Q: What is macro stability and resource mobilization in fiscal policy?
A: In an economy, fiscal policy implies the action of the government to influence the aggregate demand…
Q: Country D experiences a recession due to a decrease in consumer confidence. There are two…
A: Decline in consumers confidence results in decline in demand for consumer goods, thus there would be…
Q: What is the main reason for employing expansionary fiscal policy during a recession?
A: Fiscal policy is an instrument used by the government and the central bank to look on to the…
Q: Identify one fiscal policy action that could counter the increase in investments. Explain how this…
A: Fiscal policies are actions taken by the government to stabilize the economy. The policies include…
Q: Since 1969, the U.S. federal government had a budget surplus On the late 1980s Oin the late 1970s…
A: The budget surplus of the government is the situation when the income earned is greater than its…
Q: Fiscal policy includes all of the following, except: O Borrowing Transfer payments (TP) wages…
A: Fiscal policy refers to the economic policy that is implemented by the government of a country to…
Q: Suppose a government has a tax revenue shortfall. Will hyperinflation inevitably follow unless the…
A: Hyperinflation is a term used to define a nation's economic abrupt, disproportionate, and…
Q: Expansionary fiscal policy increases the government budget deficit. True, False, or Uncertain?…
A: Fiscal policies are the policies that are managed by the government with the aim of influencing…
Q: To combat inflation, the federal government could apply which fiscal policy? decrease government…
A: Fiscal policy refers to changes in government spending and taxes.Monetary policy refers to changes…
Q: 14 MULTIPLE SELECT: If the government decides to pursue a expansionary policy, which of the…
A: An expansionary fiscal policy aims to increase the Aggregate demand by decreasing taxes and…
Q: which of the following individuals would most likely favor an increase in government spending, as…
A: a and d would be opposed to tax cut.
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- 1.Which of the following statements is true? A)Adjusting for purchasing-power parity makes India’s GDP look even smaller when compared to the GDP of the United States. B)After adjusting for purchasing-power parity, China has the largest economy of any single country in the world. C)Adjusting for purchasing-power parity allows us to make more accurate comparisons of the GDP of the same country across different time periods. D)All of the above. E)None of the above. pls solve asap................Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: (i) Private Saving (ii) Investment (iii) Government Spending (iv) National Savings (v) Taxes (vi) Public savingsA small open economy is described by the following equations:C = 60 +.75(Y - T)I = 150 - 20rNX = 150 – 50eM/P = Y - 40rG = 1500M = 2000P = 2R* = 5Assume a balanced budget.a. Derive and graph the IS* and LM* curves.b. Calculate the equilibrium exchange rate, level of income, and net exports.c. Assume a floating exchange rate. Calculate what happens to the exchange rate, the level ofincome, and net exports if the government increases its spending by 50. Use a graph to explainwhat you find.
- Problem 2. Answer the following questions briefly. a) What items are excluded from the calculation of GDP? b) Explain how it is possible for the United States current account deficit to grow while the budget deficit has disappeared, as happened in the 1990s. c) Is it possible for each nation to have CA surpluses? Explain. d) How are GDP and domestic spending related in a closed economy? In an open economy?Q3-14 If a country's currency's external value is tied or pegged to the currency values of the country's leading trading partners, this arrangement is known as a Select one: a. peg against the SDR. b. managed float. c. peg against a "basket" of currencies or a "composite." d. currency board.Consider the following data for MILESTONES, a hypothetical economy and nation-state. GDP = 8500 billion Government Purchases 500 billion Government Tax Revenue = 1000 billion Welfare Payments = 200 billion Social Security Payments = 400 billion Medicare Payments 300 billion Interest Payments 200 billion Consumption = 7200 billion Gross Investment 800 billion Net Foreign Factor Income = -500 billion PART A 1. What is the level of national saving(NS) in MILESTONES 2. What is the current account (CA) balance in MILESTONES? 3. Describe the current relationship between saving (NS) and gross investment (GI)?
- Consider the following open economy SImodel set upY = 18000C = 300 + 0.8(Y − 2500)I = 3500 − 400(r)r = r∗ = 5G = 3000T = 2500NX = 5000 − 30(e)(a) Compute National Savings.(b) Compute Net Exports, NX and exchangerate, e.(d) Compute the impact on e, if both Gincrease by 500.The equilibrium condition for GDP in an open economy is: Y = C + I + G + (X – M) GDP can be eitherspent, saved, or taxed away , so it is necessary that: Y = Substituting the second equation into the first equation and rearranging yields: X – M = The fundamental equation shows that an increase in the taxes will cause the budget deficit to , which should the trade deficit.You have the following annual figures for the New Zealand economy. Investment expenditure $42.5 billion Government savings -$1.7 billion If the current account balance was equal to zero then private savings must be $____billon (use 1 d.p.).
- Respond succinctly and precisely to each of the following scenarios. Hint: these are beginning with a currency value change; start from there, and do not consider what caused the change. (h) The European Union and Brazil are trade partners. Brazil's currency, the real, appreciates relative to the European Union's euro. Ceteris paribus, how will this change affect: Brazil's net exports? Explain. the capital and financial account of Brazil?Everything else equal, what is the of an increase in the consequence EUR/USD? a. The $ has depreciated and European exports to the U.S. are now less expensive. b. The $ has appreciated and U.S. exports to Europe are now more expensive. c. The $ has depreciated and European exports to the U.S. are now more expensive. d. The $ has appreciated and U.S. exports to Europe are now less expensive.(a) Can current account deficits indicate the health of an economy? Explain (b) Do you expect the balance of payments (BP) curve for a developing country to be flatter than the BP curve for a developed country? Explain. (c) "A Balanced Budget Policy is expansionary when both government spending and taxes increase by the same magnitude." Discuss.
