If the economy is in stagflation, what would eventually happen as a result if no fiscal policy is used and th economy adjusts back to full employment? Prices would increase and unemployment would increase Prices would increase and unemployment would fall

If the economy is in stagflation, what would eventually happen as a result if no fiscal policy is used and th economy adjusts back to full employment? Prices would increase and unemployment would increase Prices would increase and unemployment would fall

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following is an example of fiscal policy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Electing a new member of Congress. Changing G or changing T. C Increasing the amount of money in circulation. d Charging a higher interest rate on mortgages.
Identify each scenario as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. a. An increase in the money supply is b. A decrease in taxes is fiscal policy. not an example of fiscal policy. a contractionary an expansionary d. An increase in tax rates is c. A decrease in the unemployment rate is fiscal policy. fiscal policy. f. A decrease in the money supply is e. A decrease in government spending is fiscal policy. fiscal policy. h. An increase in corporate bonds purchased is g. A decrease in transfer payments is fiscal policy. fiscal policy. i. An increase in government spending is fiscal policy.
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
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Which of the following is an example of contractionary fiscal policy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. decreasing the money supply a b increasing the interest rate increasing government spending d increasing taxes
Question 13/28 NEXT A BOOKMARK If inflation becomes too high, the government can use fiscal policy to slow the economy down some and help bring it down. This is an example of A Cautionary policy B Contractionary policy Expansionary policy D Deflationary policy DELL -> 女 #3 24 & 1 2 4. 6 7 8. W e r y 司

How does the growing national debt impact minimum wage and the future population? As national debt grows beyond $21.5 trillion dollars how will it further impact th economy for the future generations. Questions like: Is the minimum wage going to drop further, are the number of jobs that can provide benefits like insurance going to be affected? Are things like rent going to rise further in cities like New York, Chicago and more making it harder for middle class to live there?
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by changing toxes to reduce the burden of this recession. Fiscal Policy 140 LRAS AS 130 120 110 100 90 80 70 AD 60 50 AD, 40 80 160 240 320 400 480 560 640 720 800 Real GDP (billions of dollars) Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. How much does oggregate demanci need to change to restore the economy to its long-run equilbrilum? billion b. If the MPC is 0.667, how much do taxes need to change to shift aggregate demand by the amount you found in part a? billion Suppose instead that the MPC is 0.5. C. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ [ billion and taxes need to change by $ billion. Price Level
Some politicians have suggested that the United States enact a constitutional amendment requiring that the Federal government balance its budget annually. Such an amendment, f strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession. This is because when the economy enters a recession, 0000 net tax revenue falls and transfer payments rise. Balancing the budget would require raising transfer payments and raising taxes. net tax revenue rises and transfer payments fall. Balancing the budget would require raising transfer payments and lowering taxes. net tax revenue falls and transfer payments rise. Balancing the budget would require lowering transfer payments and raising taxes net tax revenue rises and transfer payments fall. Balancing the budget would require lowering transfer payments and lowering taxes
which of the following individuals would most likely favor an increase in government spending, as opposed to a tax cut, as the basis for expansionary fiscal policy? a. the family that takes and cerise, air conditioned, power-steed, power brakedautomobile through cities that are badly paved made hidious by litter-JK Galbraith b. the bastards [ read politicans] can't spend what they don't have-howard jarvis c. there must be cobstant philoshical prejudice against intervention by the state into our lives, for by defination such intervention abridge liberty -William Simone d. public expenditure are made for the primary benefits of the middle class and financed with taxes on the poor and rich-director's law
Imagine that a group of advisors to the president has suggested providing a tax cut for the middle class in order to stimulate the economy and reduce unemployment. The president has asked for your analysis of this proposed tax cut. Post your thoughts both as an economic scientist and economic policy advisor. Read the scenario and, respond to the following: Describe how an economic scientist would approach the tax cut recommended by the advisors in the scenario you just read. What are some economic factors that the economic scientist would consider when crafting his or her statement on the tax cut proposed? Describe how an economic policy advisor would approach the same tax cut and provide the reasoning behind the position. Remember to think like an economist scientist and economic policy advisor when you write your post, even if it goes against your own opinions about whether a tax cut is a good idea. To guide your responses, consider the following questions: What economic…