An increase in Medicaid expenditure brought about by a flu epidemic is.Decreased expenditureson national defense during peace time is _. A. automatic fiscal policy action; automatic fiscal policyaction B. automatic fiscal policy action; discretionary fiscal policy action C. discretionary fiscal policyaction; automatic fiscal policy action D. not fiscal policy action because it is expenditure based an eventthat the government cannot influence; not fiscal policy action because national defense is necessary;

The correct answer is: Option (B) automatic fiscal policy action; discretionary fiscal policy action…

Answered: An increase in Medicaid expenditure…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 1SQP

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Similar questions

Explain the effectiveness of the fiscal policy in economics.
Which of the following is contractionary fiscal policy? raising income tax rates subsidizing basic research expanding transfer payments expanding health care coverage
Describe the shortcomings of Fiscal Policy. Be as thorough as possible.
During difficult economic times, why are uniform across-the-board budget cuts poor fiscal policy?
Which of the following is considered contractionary fiscal policy? A) Congress decreases the income tax rate. B) Congress decreases defense spending. C) Legislation removes a college tuition deduction from federal income taxes. D) The New Jersey legislature cuts highway spending to balance its budget.
Describe the difficulties that can arise in implementing fiscal policy.??
EXPANSIONARY FISCAL POLICY 20% GOVERNMENT SPENDING 80% TAKATION Gvemme Spnding Taationmater than pter than tation apud How will Expansionary Fiscal Policy affect the Federal Budget? A budget surplus will decrease the national debt Deficit spending will decrease the national debt Deficit spending will increase the national debt A budget surplus will increase the national debt
What is a surplus unit? What is a deficit unit?
which of the following individuals would most likely favor an increase in government spending, as opposed to a tax cut, as the basis for expansionary fiscal policy? a. the family that takes and cerise, air conditioned, power-steed, power brakedautomobile through cities that are badly paved made hidious by litter-JK Galbraith b. the bastards [ read politicans] can't spend what they don't have-howard jarvis c. there must be cobstant philoshical prejudice against intervention by the state into our lives, for by defination such intervention abridge liberty -William Simone d. public expenditure are made for the primary benefits of the middle class and financed with taxes on the poor and rich-director's law
How do the instances when expansionary fiscal policy should be used compare with those for contractionary fiscal policy? Expansionary fiscal policy should be used during recessions to help build the economy and contractionary fiscal policy should be used when there is high inflation. Expansionary fiscal policy should be used to increase government revenue and contractionary fiscal policy should be used to increase consumer spending. Expansionary fiscal policy should be used to combat high inflation and contractionary fiscal policy should be used to increase government revenue. Expansionary fiscal policy should be used to decrease the unemployment rate and contractionary fiscal policy should be used when economic growth is too fast.
Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to running the country’s finances B. A government that is running a budget deficit C. A government that is running a budget surplus D. Whether a government is pursuing an expansionary or contractionary fiscal policy
What is the primary goal of fiscal policy? a) Control inflation b) Ensure price stability c) Manage unemployment d) Influence economic activity

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