One timing problem in using fiscal policy to counter a recession is the "legislative lag" that occurs between the   start of the recession and the time it takes to recognize that the recession has started.   start of a predicted recession and the actual start of the recession.   time fiscal action is taken and the time that the action has its effect on the economy   time the need for the fiscal action is recognized and the time that the action is taken.

Q: Fiscal policy determines the level of interest rates.True or False

A: Fiscal policy: It refers to the policy which is used by the government so that it can make…

Q: In the context of fiscal policy, what is a budget surplus? A. Government spending exceeds government…

A: Fiscal policy is a basic part of an administration's procedure for dealing with its economy. It…

Q: If government policy makers were worried about the inflationary potential of the economy, which of…

A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…

Q: Which of the following illustrates the effectiveness lag? A.Policymakers implement contractionary…

A: Effectiveness lag can be understood as when the policy is implemented or any change in policy is…

Q: Which of the following is the best example of an automatic stabilizer? O national defense…

A: The automatic stabilizer is a type of fiscal policy (i.e., increases public spending and decreases…

Q: discuss the economic implications of  Joe Biden’s fiscal stimulus for the US economy and the…

A: The economies around the globe are focused on their development and growth in various areas. The…

Q: If government increases spending and wants to maintain a balanced budget, it should

A: The answer is as follows:-

Q: What is the meaning and definitions of fiscal policy?

A: Fiscal policy is implemented by the government of a country. Money supply refers to the total volume…

Q: In X-Men town the federal government must run a balanced budget. The town is currently in They might…

A: Fiscal policy is the tool of the government through which the govenrment alters the aggregate demand…

Q: Find the primary deficit when the fiscal deficit is $2100 and the interest on payment are $1500

A: Generally in the given question, Fiscal deficit is given as = $2100 The interest on payment stated…

Q: Classify each statement based on the type of fiscal policy to which it refers. answer bank in image…

A: Expansionary fiscal policy: Expansionary fiscal policy refers to the situation where the government…

Q: Will a discretionary fiscal policy action that involves spending $100 billion have the same overall…

A: The discretionary fiscal policy refers to changes in the tax rate or the level of government…

Q: Calculate fiscal deficit when Borrowings is $15,000 and the interest is $600

A: # Fiscal deficit is the difference between total expenditure and total receipts or spending of the…

Q: Which of the following is NOT an automatic stabilizer?     income taxes   transfers for welfare…

A: As the name suggests itself Automatic stabilizers can be defined as the tool of fiscal policy which…

Q: Fiscal policy is a plan for taxing and spending that is designed to steer an economy in a desired…

A: Fiscal policy is the policy of the government that is used to shift the aggregate demand curve.…

Q: Select the following government actions that would be considered part of fiscal policy.…

A: The objective of the question is to identify which of the given actions are part of fiscal policy.…

Q: The U.S. economy is over a decade removed from the Great Recession. For several years after the…

A: The  U.S economy is very developed, it is a kind of mixed type of economy,& also the biggest…

Q: During a recession, the government decides to give an additional child tax credit to households of…

A: Recession occurs when there is a fall in the aggregate demand in the economy. The fall in the…

Q: What role does fiscal policy play in influencing aggregate demand and managing economic…

A: Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the…

Q: he Effects of Fiscal Deficits on an Economy.

A: Fiscal deficits are unfavourable balances that develop whenever a government spends more within a…

Q: 2. What is the largest component of the federal budget? A) Entitlements C) Defense B) Net interest

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: Right now many economies in the world are experiencing a downturn due to the Corona Virus. a) What…

A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only the…

Q: Discuss Expansionary Fiscal Policy. Who is responsible for implementing fiscal policy? What may be…

A: Policies are created by the government in order to keep the economy on track and ensure economic…

Q: Which of the following would be most likely to induce Congress and the president to conduct…

A: Fiscal policy refers to the policy under which the state or government uses instruments such as…

Q: One of the arguments against using fiscal policy is __________. Group of answer choices tax cuts…

A: The case against discretionary fiscal policy rests on two arguments: First, the possibility of…

Q: the largest category of the federal budget outlays is from

A: The federal budget outlays refer to the total amount of money that the federal government plans to…

Q: f an increase in government spending is accompanied by a reduction in spending by firms and…

A: The GDP or the gross domestic product is defined as the value of all final goods and services newly…

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: Currently many forecasters are predicting a recession for this year. What type of fiscal should the…

A: In order to affect economic conditions, particularly to stabilize economic volatility and foster…

Q: One purpose of discretionary fiscal policy is to Multiple Choice O increase government spending…

A: An economy's overall health can be influenced by a government's tax, spending, and borrowing…

Q: Several problems of timing may arise in connection with fiscal policy. Which of the following is not…

A: There are some limitations of the fiscal policy(FP). The main limitation is that the policy includes…