Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a44212c-b8b1-4ff0-bde6-3e570916b708%2F7699229c-c4d3-4354-8781-53ca893d59f9%2Fhs26558_processed.jpeg&w=3840&q=75)
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
< Prev
3 of 5
Next >
FEB
tv
6.
MacBook Air
DII
吕0
000
F6
F7
FB
63
F4
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a44212c-b8b1-4ff0-bde6-3e570916b708%2F7699229c-c4d3-4354-8781-53ca893d59f9%2Fgbfqqra_processed.jpeg&w=3840&q=75)
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
![](/static/compass_v2/shared-icons/check-mark.png)
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education