In the first quarter 2020, the unemployment rate in the Gaza Strip reached to 69% due to COVID 19. If the Palestinian government decided to solve this problem by an expansionary fiscal policy. Explain the impacts of this policy on the interest rate and aggregate output? Using graph?

Q: f social security payments to retirees increase, AD will increase and raise Y*

A: Social Security Benefits(SSB) are the benefits which provide some replacement income for disabled…

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Q: Which of the following statements about Fiscal Policy is INCORRECT? (2) (a) In order to combat…

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Q: that demonstrates an understanding of the fiscal policy, explaining it in economic terms. No…

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Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: Suppose Nickelmore Bank has $21100 in assets, and its net worth is $11000. What is the total value…

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Q: 2. Assume the MPC is 0.75 and policymakers have targeted real GDP to decrease by $300billion. By how…

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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: One argument often heard against using fiscal policy to tame the business cycle is that the lags…

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Q: Which of the following fiscal policy actions would be appropriate if the economy is experiencing an…

A: Fiscal policy is a macroeconomic policy tool that governments utilize to impact an economy's overall…

Q: Suppose the government decided to increase taxes to rein in consumer spending, but everything else…

A: Given information: The government decided to increase the taxes to rein in consumer spending, but…

Q: The US government has recently announced and started to implement a large-scale fiscal expansion to…

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Q: Discussion 4 Discuss the "FISCAL POLICY: A KEYNESIAN PERSPECTIVE" was John Maynard Keynes Right?…

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Q: 2. Assume the recessionary gap in two countries = 10 million Euros. The governments decide to fight…

A: Crowding out is the phenomenon where increase in government spending lead to rise in interest rate…

Q: Determine how each of the following monetary or fiscal policy would shift the aggregate demand…

A: a. Assuming the economy is currently producing above the full employment output, the government…

Q: he cost of rebuilding the Philippines after typhoon Haiyan could reach USD 5.8bn”, a senior official…

A: Initial rise in the government expenditure leads to multiplier rise in the income level, this is…

Q: SRAS PL2 PL AD2 AD Y,Y2 REAL GDP The Aggregate Demand Model shows an increase in Aggregate Demand or…

A: The given figure shows the increase in aggregate demand. Prices and output are increased.

Q: The use of fiscal policy to end recessions is limited because O The level of taxes is not always…

A: A recession refers to a significant decline in economic activity across an economy, usually…

Q: 9 Suppose the federal government had budget deficits of $40 billion in year 1 and $100 billion in…

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Q: As a result of COVID-19, the Government of Canada has been actively using a discretionary fiscal…

A: Macroeconomic frameworks analyze an economy's performance, including GDP, inflation, unemployment,…

Q: 1. Recommend fiscal policy that is most likely to be invoked during a period of recession or high…

A: Fiscal policy is a tool in the hands of government officials to influence the growth of…

Q: Que 41: What do you understand by cyclicality of the fiscal policy?

A: Cyclicality of fiscal policy refers to the tendency of government spending and taxing policies to…

Q: (a) The hypothetical information in the following table shows what the situation will be in if the…

A: Fiscal policy means the expenditure that is incurred in constructing the roads, railways, and…

Q: Suppose AS decreases by $50 billion for every 1 percentage point increase in business tax rates. By…

A: Answer; Increase in tax rate = 28 -22 = 6%.

Q: Suppose the government decide to use fiscal policy to close the output gap. The marginal propensity…

A: here we calculate the change of government spending require to close the GDP output , by using the…

Q: Suppose equilibrium GDP is less than full-employment output and the economy is in a recession. What…

A: Fiscal policy is used by government to make the economy going normal without any fluctuations. The…

Q: Define what is 'automatic stabiliser' in fiscal policy, and provide 2 examples

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Q: J 7 What curve is meant to impacted by fiscal policy? What direction do policy makers hope to shift…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Exercise 4 Use a combination of text and drawing of figures when answering the following questions:…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Fiscal policy is the use of government tax and expenditure policy to influence the economy O True O…

A: Fiscal policy is used by government to influence aggregate demand and real GDP in the economy.

Q: 16 Use the following graph to answer the next question. Price Level ADo i AD₁ AS AD₂ AD2 Yo Y₁ Real…

A: It is given that the economy is currently operating at output level Y2; but the full employment…

Q: What are the 3 tools for fiscal policy?  How would they be used for expansionary stabilization?…

A: Fiscal policy is a tool used by the government to influence a country's economy. There are two types…

Q: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an…

A: Fiscal policy is a policy that is used by the government of a country in order to influence a…

Q: Give a real-word example from social media that demonstrates an understanding of the fiscal policy,…

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Q: 1) Distinguish between discretionary and nondiscretionary fiscal policy.

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Q: T = 80 + 0.25Y G = 420 IM = 100 + 0.1Y X = 550 a. The trade balance (X – IM) when the government's…

A: The trade is said to be balanced when the imports (IM) equals exports (X). The government budget is…

Q: Fiscal Policy cannot stabilize the Economy if there is High Unemployment and High Inflation…

A: Contractionary policy will decrease aggregate demand and shift it to the left. This decreases real…

Q: Using the aggregate expenditures model, answer the questions below to show how government fiscal…

A: Full employment level refers to the total output produced by the economy with the given amount of…

Q: Which fiscal policy would make a budget surplus smaller or a budget deficit larger? lower government…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: "Even if there is full information and that wages and prices are fully flexible as what the…

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Q: the economy has entered a recession. what are two fiscal and two monetary policy actions that could…

A: Monetary policy is a policy tool implemented by the central bank in order to control the overall…