Explain what is meant by saying that a number of social welfare programs are examples of fiscal federalism. Give an example of one such program and explain how it fits with the concept of fiscal federalism
Q: Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go…
A: Arthur Laffer is the economist who explain the relationship between tax rates and the revenue…
Q: Distinguish between automatic fiscal policy and discretionary fiscal policy. What type of fiscal…
A: Fiscal policy refers to the government policy regarding tax and government spending which stabilizes…
Q: If government policy makers were worried about the inflationary potential of the economy, which of…
A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…
Q: If the objective of fiscal policy is to stabilize (achieve full-employment (potential) GDP and…
A: A balanced budget is a circumstance in monetary planning or the budgeting technique where total…
Q: Economist Arthur lagger famously pointed out that, in some cases, income tax revenue can actually go…
A: The tax is the unilateral payment made by the people towards the government for various purposes…
Q: Why is crowding out an important issue in the debate over the use of fiscal policy?
A: Crowding out effect is an economic situation where interest rates are increased. This ends up in…
Q: Give a brief definition of fiscal policy? What are its economic goals? Fiscal policy is the use…
A: Answer: Definition of fiscal policy: Fiscal policy is a policy of government wherein the government…
Q: What would happen if contractionary fiscal policy were implemented during an economic boom but,due…
A: The fiscal policy is a policy of the government which includes instruments namely taxes, government…
Q: Which of the following is contractionary fiscal policy? raising income tax rates subsidizing basic…
A: A contractionary fiscal policy is implemented by the government through the reduction of its…
Q: Explain how built-in (or automatic) stabilizers work. What are the differences between proportional,…
A: Automatic stabilizers: The automatic stabilizers are the economic policies and programme of fiscal…
Q: Based on your understanding of the multiplier effect and the crowding-out effects, do you think that…
A: The macroeconomic equilbrium in an economy occurs at the point where the aggregate demand in the…
Q: Identify and briefly describe at least four practical difficulties of discretionary fiscal polic
A: The use of taxation and expenditure by the government to affect the economy is known as fiscal…
Q: How could fiscal policy alleviate the problem? What specific policy changes would be needed?
A: Everything involving public funding or taxes is referred to as fiscal. Fiscal policy refers to how…
Q: Under what conditions is expansionary fiscal policy the most effective at increasing output? Why?
A: Expansionary fiscal policy is the policy which is to be used to push back the equilibrium normal…
Q: Which two programs, taken together, constitute the largest share of federal expenditure in the U.S.…
A: National Budget refers to the estimate of total receipt and total expenditure of a nation.It…
Q: During a recession, the government decides to give an additional child tax credit to households of…
A: Recession occurs when there is a fall in the aggregate demand in the economy. The fall in the…
Q: What role does fiscal policy play in influencing aggregate demand and managing economic…
A: Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the…
Q: 17. Which of the following regulations prevent price gouging? a) Price floors b) Price fixing c)…
A: 17. In an economy, price gouging refers to the situation when a seller charges a price much higher…
Q: Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in…
A: Automatic stabilizers are economic parameters that act automatically to counter the fluctuations in…
Q: Classify each statement based on the type of fiscal policy to which it refers. Expansionary fiscal…
A: The fiscal policy action that is used by the government to increase the aggregate demand is known as…
Q: Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain…
A: In an economy, headline fiscal deficit is the government over expenditure when receipts are less…
Q: Find one article describing at least one instance of the use of Fiscal Policy during that 15 year…
A: One example of fiscal policy being used during the 15-year period from 2008 to 2023 is the…
Q: What is one thing we know and one thing we don’t know about how fiscal policy works?
A: One thing we know about how fiscal policy works is that it can be used by governments to influence…
Q: Why are expenditures such as crime prevention and education typically done at the state and local…
A: The central government will be of uniform nature throughout the country. The state of the local…
Q: What is meant by discretionary fiscal policy? Give an example of how the government can use fiscal…
A: Discretionary fiscal policy is a planned change in the level of taxes or government expenditure.…
Q: From a political economy perspective, why does fiscal policy have a built-in expansionary bias?
A: Fiscal policy refers to the use of government spending and taxation to influence the economy. It…
Q: Compare and contrast the use of government spending changes versus tax changes as a means of…
A: Both fiscal policies whether it is the use of government spending and use of tax changes are…
Q: What is fiscal policy? What effect does it have on the economy? What effect does the economy have on…
A: Disclaimer:“Since you have asked multiple question, we will solve the first question for you. If you…
Q: What are the two things Congress could manipulate to enact Discretionary Fiscal Policy?
A: Congress is the legislative branch of Federal Government. Fiscal Policy refers to change in…
Q: Why do critics charge that fiscal policy has a “big-government bias”?
A: Answer-Fiscal policy is the notion that government should actively stimulate the economy in bad…
Q: Our federal government establishes a budget that determines what programs and services can be…
A: Answer- Need to find- Our federal government establishes a budget that determines what programs and…
Q: Why is identifying potential opportunities, and managing within predictable limits for fiscal policy…
A: Fiscal policy is an important tool for dealing with the economy on account of its capacity to…
Q: List what specific, deliberate actions the federal government could take to enact expansionary…
A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…
Q: and
A: Supply-side economics is theory postulating that tax cuts for the wealthy result in increased…
Q: a. A recession. b. A stock market collapse that hurts consumer and business confidence. c.…
A: * ANSWER :- (a)
Q: What is the difference between discretionary fiscal policy and automatic stabilizers? How are…
A: Introduction Economy is the organized system of production, distribution, and consumption of goods…
Q: During difficult economic times, why are uniform across-the-board budget cuts poor fiscal policy?
A: Difficult economic times refer to periods of economic downturn, characterized by a significant…
Q: An example of a expansionary fiscal policy is ___? need only one example fast
A: Accordingly the expansionary fiscal policy is merely known as a decrease in the tax revenue and the…
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