Propose the Fiscal Policy needed to fix this economy.

Q: What is the importance of fiscal policy during times of economic recession?

A: Fiscal policy refers to the type of the economic policy in which the government of a country tries…

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: What is meant by fiscal policy? How far can it be used to ensure, a high level of employment?

A: In a market economy, decisions are taken by the market forces and the government has limited…

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 part of the AS curve fiscal policy works better and why?

A: Aggregate supply refers to the total value of goods and services available for purchase at a…

Q: Why is crowding out an important issue in the debate over the use of fiscal policy?

A: Crowding out effect is an economic situation where interest rates are increased. This ends up  in…

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

A: The answer is as follows:-

Q: Briefly explain how an expansionary fiscal policy works.

A: In an economy, fiscal policy refers to the action of the government when it tries to influence the…

Q: How does fiscal policy affect the equilibrium income in an economy

A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…

Q: What is fiscal policy and why it’s important?

A: Fiscal policy is used to control the affects of business cycles in the economy. In times of…

Q: TRUE/FALSE Spending by local governments to stimulate or slow down their local economies is an…

A: The Fiscal Policy (FP) is a tool of government to adjust the economy. The Monetary Policy is a tool…

Q: How does fiscal policy determine the rules of the market? Who controls the rules of the market?

A: Fiscal coverage refers to the government's use of taxation and expenditure measures to influence the…

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: What would be the primary deficit if the fiscal deficit is $700 and Interest payment is $300 ?

A: A fiscal deficit is a setback in an administration's pay contrasted and its spending. An…

Q: When the federal government uses taxation and spending actions to stimulate the economy it is…

A: It is the policy of the government regarding public revenue and public expenditure. Through the…

Q: can Social Security and Medicare be fiscal time bombs

A: Social security is an initiative by Federal government which provides sources of income to people…

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 is the primary component(s) of GDP that Fiscal Policy is trying to effect?

A: Fiscal Policy refers to the change in government spending or taxes in order to promote economic…

Q: Distinguish between deficit and debt.

A: Deficit refers to the outflow of money that is greater than the inflow of money. For example, a…

Q: Why Krugman believe that fiscal austerity in france or more generally in Europe would fail?

A: Fiscal austerity is used to define the steps or the direction taken by government which leads to…

Q: What is the Effects of Fiscal Policy on Real GDP and the Price Level?

A: Fiscal policy refers to a government's approach to influencing the state of the economy through…

Q: What are the reasons of fiscal policy not being effective in an economy according to classical…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: Define the budget deficit

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

Q: Subsidies are a part of ___________ expenditure

A: Any financial support which is presented as an incentive by the government to any sector or public…

Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…

A: The answer is - raising the quantity of money in circulation

Q: What are the positive and negative impacts of fiscal policy on businesses within an economy?

A: Fiscal policy refers to the policies of expenditures and taxes of the government of a country. It…

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: T F Fiscal policy determines the level of interestrates.

A: Fiscal policy refers to the taxation and expenditure decisions of the government that influences a…

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: An example of a expansionary fiscal policy is ___? need only one example fast

A: Accordingly the expansionary fiscal policy is merely known as a decrease in the tax revenue and the…

Q: What is classes as an expansionary fiscal policy?

A: Fiscal policy is the government-imposed policy used to change economic conditions like demand,…

Q: What should government do with its spending and taxes during a recession? Why?

A: During a recession, taxes should be reduced and spending should be increased in order to trigger…

Q: Which of the following is an example of fiscal policy? Select an answer and submit. For keyboard…

A: Fiscal Policy refers to the measures employed by the governments to stabilize the economy of the…

Q: Fiscal policy can be classified into which two groups

A: Fiscal policy alludes to the public authority activity to impact the market by making changes in tax…

Q: the impact of fiscal policy on the aggregate price level, unemployment and income

A: The policy that makes use of a collection of revenue of government and expenditure by the government…

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.