How much fiscal stimulus or restraint occurred between

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Instructions: Enter your responses as a whole number.
How much fiscal stimulus or restraint occurred between
a. 2015 and 2016?
%24
billion of fiscal
stimulus
b. 2006 and 2007?
billion of fiscal
restraint
%24
Transcribed Image Text:Instructions: Enter your responses as a whole number. How much fiscal stimulus or restraint occurred between a. 2015 and 2016? %24 billion of fiscal stimulus b. 2006 and 2007? billion of fiscal restraint %24
Use the data related to cyclical vs. structural budget balances (in billions of dollars) to answer two questions.
Fiscal
Budget
Balance
Cyclical
Component
Structural
%3D
Year
Component
2000
236
58
178
2001
128
-1
129
2002
-158
-83
-75
2003
-378
-107
-271
2004
-413
-58
-355
2005
-318
-20
-298
2006
-248
11
-259
2007
-161
17
-178
2008
-459
-26
-433
2009
-1,413
-251
-1,162
2010
-1,294
-300
-994
2011
-1,300
-254
-1,046
2012
-1,087
-191
-896
2013
-680
-189
-491
2014
-484
-146
-338
2015
-438
-79
-359
2016
-587
-69
-518
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FEB
tv
6.
MacBook Air
DII
吕0
000
F6
F7
FB
63
F4
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Transcribed Image Text:Use the data related to cyclical vs. structural budget balances (in billions of dollars) to answer two questions. Fiscal Budget Balance Cyclical Component Structural %3D Year Component 2000 236 58 178 2001 128 -1 129 2002 -158 -83 -75 2003 -378 -107 -271 2004 -413 -58 -355 2005 -318 -20 -298 2006 -248 11 -259 2007 -161 17 -178 2008 -459 -26 -433 2009 -1,413 -251 -1,162 2010 -1,294 -300 -994 2011 -1,300 -254 -1,046 2012 -1,087 -191 -896 2013 -680 -189 -491 2014 -484 -146 -338 2015 -438 -79 -359 2016 -587 -69 -518 < Prev 3 of 5 Next > FEB tv 6. MacBook Air DII 吕0 000 F6 F7 FB 63 F4 2
Expert Solution
Step 1

Fiscal stimulus refers to the amount by which the structural deficit in a nation rises. It can also occur when the structural surplus falls.  Examples are the tax cuts announced by the government or an increase in the amount spent by the government.

Fiscal restraint refers to the amount by which the structural deficit in a nation falls. It can also occur when the structural surplus rises. Examples are reduction in government spending and increase in the tax rates by the government.

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