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: 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: 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: 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: 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: 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…