N R FIRMS 80m 100m FINANCIAL SECTOR 50m 120m GOVER 220m

Q: Describe three ways in which government spending can be financed

A: Government spending on goods and services is one of the major components of aggregate demand.…

Q: How will the deficit for the bottom line budget of $3.1 trillion affect the economy?

A: The budget deficit would result in the increase of the government expenditures over the revenues.…

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: Discuss the difficulty in predicting the effects of discretionary fiscal policy.

A: Fiscal policy is the process through which a government modifies its spending and tax rates in order…

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: how discretionary fiscal policy fights recession and inflation

A: The fiscal policy of the government used as per the need of the government is discretionary fiscal…

Q: How could fiscal policy alleviate the problem? What specific policy changes would be needed?

A: Everything involving public funding or taxes is referred to as fiscal. Fiscal policy refers to how…

Q: Under what conditions is expansionary fiscal policy the most effective at increasing output? Why?

A: Expansionary fiscal policy is the policy which is to be used to push back the equilibrium normal…

Q: Discuss the government’s use of discretionary fiscal policy in controlling economic fluctuations.

A: Fiscal policy refers to the government policy of expenditure and taxes. The changes in the tax and…

Q: Explain the effectiveness of the fiscal policy in economics.

A: The fiscal policy is the means by which the public power changes its spending and pay to influence…

Q: Identify and explain the fiscal policy implementation issues in detail along with relevant example.

A: Fiscal policy implies the use of government spending and taxation to influence the economy's overall…

Q: Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be…

A: Contractionary fiscal policy:- When the government either slashes expenditure or hikes taxes, it is…

Q: Which of the following sentences correctly describes the budget of the Federal Government of the…

A: The budget deficit states that the government's expenditure surpasses the government's revenue. The…

Q: Explain how time lags present an additional problem in fiscal policy.

A: Fiscal policy is policy of expenditure and taxes. Fiscal policy is operated by the government. Lags…

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: Define the budget deficit

A: A budget is a financial document of the economy. This includes the expected revenue of the…

Q: Does a balanced budget multiplier of one suggests that the government can stimulate economic growth…

A: The Government stimulates economic growth without changing the size of the budget deficit or surplus…

Q: How do the instances when expansionary fiscal policy should be used compare with those for…

A: The use of government spending and tax policies to impact economic conditions, particularly…

Q: Discuss the two (2) main tools that a government can use to implement fiscal policy.

A: The term 'fiscal' relates to the government's budget and signifies 'budget.' Fiscal policy is the…

Q: One timing problem in using fiscal policy to counter a recession is the "legislative lag" that…

A: Fiscal policy implies the methods and the government decisions that it undertakes to spend and…

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: Define the term fiscal policies and explain the government's government role in developing fiscal…

A: Fiscal policy is defined as the decision taken by the government to control the level of its…

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: Should the government fight recessions with spending hikes rather than tax cuts ? Explain

A: Government spending and tax reductions have different multiplying effects on the economy.

Q: discuss the budget cycle.discuss why the annual budget is considered as a political act of state?

A: Budget is a financial plan for a specified future period of time. The budget presents an estimation…

Q: Calculate the value of total expenditure when the budgetary deficit is given to be as $12,000…

A: we know that the difference between the total expenditure and the total receives always give us the…

Q: Evaluate the effectiveness of fiscal policy as a tool to reduce unemployment.

A: Fiscal policy is a policy used by the government in which it influences the level of government…

Q: What are the changes proposed by Budget 2021 in context of Income tax and their impact on…

A: The amendments to the income tax policies in the budget are to make it easier for citizens to…

Q: an a reduction in the budget deficit and fiscal stimulus occur simultaneously? Explain your answe

A: Yes, it can go both ways they can maintain fiscal stimulus with a reduction in the budget deficit.…

Q: Define fiscal policy and explain the role of income taxes and government spending as fiscal policy…

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…

Q: Find the size of the cyclically adjusted budget deficit. Find the initial equilibrium for prices (P)…

A: The cyclically adjusted budget is the budget that would be implemented if the economy were fully…