So we just had one of biggest (if not THE biggest) actions of Fiscal Policy. Now using the Agg Model, you will explain what is happening now... First, prepare a graphic representation off the economy before the Biden Covid Bill. In the space below, insert the names for X and Y axis, graph LRAS and SRAS and AD line, and identify/label equilibrium. Be sure to identity whether the economy is at equilibrium, in expansion or in recession.

Q: Describe fiscal policy. How can it affect the money supply, interest rates, and the expansion and…

A: Fiscal policy refers to the method of government spending and tax policies to take a control over…

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A: Resource mobilization is the process of receiving resources from the resource provider with use of…

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: a. Based on the macro workhorse model, explain the 'journey' (mechanism) how an initial…

A: The fiscal policy is decided by the government of the country. It means taxes or government…

Q: Inflation rates in the US have recently been at their highest level in decades. Imagine your local…

A: Fiscal policy refers to the use of government spending and taxes to influence the performance of an…

Q: The graph below depicts an economy where a decline in aggregate demand has caused a recession.…

A: A multiplier broadly means that an economic factor that, when changed, results to changes in several…

Q: What is the role of the Council Economic Advisers (CEA) as it relates to the effectiveness of the…

A: The Council Economic Advisor or CEA created as in the Employment act of 1946, assists and advice 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: What are the three fiscal policy tools and how would each be used to counter a contractionary gap?

A: Fiscal policy tools are the revenue and expenditure tools of the government undertaken to accomplish…

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

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

Q: Explain what is Fiscal policy and how to use it in order to overcome the current inflationary…

A: Inflation is the rate at which the general level of prices for goods and services is increasing over…

Q: Imagine Sri Lanka is trying to reduce inflation using a contractionary fiscal policy. Discuss the…

A: The government uses fiscal policy to stabilize the economy when it is overheated or output growth is…

Q: Suppose the economy begins at full employment. Label this starting point as point "1." Then,…

A: Aggregate supply: The aggregate supply or AS is a macroeconomic concept. The total amount of…

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: ist the 3 major economic goals of fiscal policy.   Who is responsible for fiscal policy?

A: Since you have multiple questions, I would be answering the first two. If you want any specific…

Q: What is the impact of using Fiscal policy tools on an economy - more specifically aggregate demand…

A: The aggregate demand is the aggregate demand of all the goods and services produced in the economy.…

Q: 1.The fact that it takes time for government officials to recognize an economic problem in is one…

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Q: Explain how fiscal policy can be implemented if an economy is in the downswing of a business cycle.

A: Fiscal policy is tools available to the central government to mitigate the economic consequence by…

Q: What type of fiscal policy would be appropriate to use during a recessionary period?  How might this…

A: Fiscal policy refers to changes in government spending and taxes

Q: The graph below depicts an economy where a decline in aggregate demand has caused a recession.…

A: Given information: Initial long-run equilibrium occurs at the intersection point of LRAS, AS, and…