Economicsn response to the Covid-19 pandemic, theCanadian government responded with aneconomic stimulus package that increasedgovernment expenditures. One result of this hasbeen that Canada's combined Federal andProvincial debt rose from 65% of GDP at thebeginning of the pandemic in 2020 to 92% of GDPin 2021.a) Does the deficit-financed stimulus packageimply a redistribution between current and futureworkers? Explain your answer.b) Is there a way that workers can offset thiseffect? Explain your answer.c) Suppose that from now on the Federal andProvincial governments run balanced budgets andthat the nominal interest rate on government debtis 2% per annum. If inflation is 2% per annum andreal GDP grows at 3% per annum, roughly whenwill the debt-GDP ratio return to its pre-pandemiclevel?

a)There would be redistribution of income between current and future workers,because debt was for…

Economics n response to the Covid-19 pandemic, the Canadian government responded with an economic stimulus package that increased government expenditures. One result of this has been that Canada's combined Federal and Provincial debt rose from 65% of GDP at the beginning of the pandemic in 2020 to 92% of GDP in 2021. a D . thh. deficit Sin

Economics n response to the Covid-19 pandemic, the Canadian government responded with an economic stimulus package that increased government expenditures. One result of this has been that Canada's combined Federal and Provincial debt rose from 65% of GDP at the beginning of the pandemic in 2020 to 92% of GDP in 2021. a D . thh. deficit Sin

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Using the appropriate aggregate demand and supply diagram, show any one instance where conducting fiscal policy on the economy of a country may not work. Don,t copy from anywher. Do answer step by step. Answer Must be correct.
How would a tax cut impact the National Budget and the National Debt? What are the pros and cons of running a deficit? Would you support such a tax cut and for whom should we impose the tax cut?
Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $5 trillion while raising only $4 trillion worth of taxes. Instructions: Enter your responses rounded to one decimal place. a. What will be the government's deficit? 24 1000 billion b. If the government finances the deficit by issuing bonds, what amount of bonds will it issue? $4 1000 billion C. At a 3 percent rate of interest, how much interest will the government pay each year? $4 30 billion d. Add the interest payment to the government's $5 trillion expenditures for the next year, and assume that tax revenues remain at $4 trillion. In the second year, compute the () Deficit: $ billion (ii) Amount of new debt (bonds) issued to finance the deficit in the second year: $ billion (iii) Total debt at the end of the second year: $ billion (iv) Debt service requirement: $ billion < Prev 5 of 5 Next W tv N FEB 877 9.
One criticism of the fiscal policy ineffectiveness is because: A.the velocity of money is predictable. B.it is dependent on Congress' approval. C.the crowding-out effect increases investment. D.prices and wages are sticky in the short run.
. What are the three general options available to the U.S. to begin to reduce the relative size of our national debt as a percent of GDP?
The task I am struggling with: The accompanying diagram shows the current macroeconomic situation for the economy of Albernia. You have been hired as an economic consultant to help the economy move to potential output Yp. a) Is Albernia facing a recessionary or inflaniotary gap? b) Which type of fiscal policy – expansionary or contractionary – would move the economy of Albernia to potential output Yp? What are some examples of such policies? c) Illustrate the macroeconomic situation in Albernia with a diagram after the succesful fiscal policy has been implemented. Thank you very much for your help.
Which is a good fiscal policy when inflation is very low and unemployment is very high? Decrease the money supply O Increase government purchases of goods and services Cut government transfer payments Decrease the budget deficit
Asap
Many communities today are concerned with their local government's ability to appropriately manage the taxes it collects. If a government spends more money on expenditures than it collects in taxes, it may end up with not enough money, called deficit. Which of the following could result in a county government having a deficit budget? a The country closes a clinic reducing expenditures, without adjusting taxes. b. The goverment raises sales and property taxes Without adjusting expenditures. C. The county gives all sheriff deputies a raise without adjusting taxes d. The county collects donations to build a WWII veteran memorial
Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to support the US economy. Also, explain how the Fiscal Policy is expected to impact GDP, Inflation and unemployment Please do fast .. ASAP .. fast
9. The lag associated with fiscal policy can: magnify economic fluctuations. stimulate output beyond full employment. depress output below full employment. all of the above.
Problem 17-05 algo If automatic stabilizers reduce the federal deficit by $60 billion for every 1 percent increase in real GDP growth, what will happen to the deficit balance if the economy's growth changes from 3 percent to -1 percent? Using this information, identify the change in the GDP growth rate and calculate the resulting change in the deficit balance. Instructions: Enter your responses as a whole number. For Part a, if you are entering a negative number be sure to include a negative sign (-) in front of that number. For Part b, enter your response as a positive value. a. Change in GDP growth rate b. Change in deficit balance The deficit will [(Click to select) by $[ billion.