Refer to the data in the table above. The direction of fiscal policy became more contractionary from:Select one:a. 2005 to 2006b. 2001 to 2002c. 2002 to 2003d. 2003 to 2004 Actual Budget Cyclically-AdjustedDeficit (-) orSurplus (+)+1.4%Budget Deficit (-)Year1999or Surplus (+)+0.1%2000+2.5+1.12001+1.3+1.12002-1.5-1.12003-3.4-2.72004-3.5-2.42005-2.6-1.82006-1.9-1.82007-1.3-1.4

Contractionary fiscal policy is when the government either tends to raise taxes or cut spending.It…

Answered: to 2002 c. 2002 to 2003

Business

Economics

to 2002 c. 2002 to 2003

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

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: State any two objectives of fiscal policy?

A: According to the given question Gradually we can say that fiscal policy always leads to the…

Q: Which of the following government actions is an example of fiscal policy? A. Regulation of…

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

Q: None

A: Step 1: Recession in the AD/AS ModelA recession is characterized by reduced economic activity,…

Q: B44. What do you understand by cyclicality of the fiscal policy?

A: Fiscal policy is a policy taken by the government of a country by controlling public expenditure and…

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

A: A fiscal policy is one in which the government use taxes, spending, and borrowing as instruments to…

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: Group A (sales per week) 1.55 million Group B (sales per week) 1.50 million Volume of sales before…

A: so here we can calculate elasticity, the average percentage change in both quantity and price. This…

Q: Fiscal Policy: End of Chapter Problem Examine what the "three difficulties with using fiscal…

A: Answer - "Thank you for submitting the question. But, we are authorized to solve only 3 subparts .…

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: 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: 2. The graph below shows the AD-AS diagram for Canada. 1200+ 1100+ 1000 AD 900 800 - 700+ 600 +…

A: The point at which aggregate demand and aggregate supply intersects is the point at which the actual…

Q: Based on the table and graph, explain how the country's rate of GPD growth has compared to its debt…

A: GDP is defined as the value of the final goods and services produced within the national boundaries…

Q: Please, provide me articles talk about key factors that policymakers should consider when…

A: Tax rates refer to the percentage or proportion of the income of individuals or entities, assets, or…

Q: 1.Which of the following is an example of fiscal policy? Select an answer and submit. For keyboard…

A: Fiscal policy refers to the policy used by the government to stabize the economy.

Q: Fiscal policy can be classified into which two groups? A. Keynesian and classical B. discretionary &…

A: Fiscal policy refers to the government action to influence the market by making changes in taxation…

Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…

A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…

Q: Refer to the Front Page and the figure to answer two questions. FRONT PAGE Fiscal Policy in the…

A: Fiscal restraint refers to a deliberate policy or action taken by a government to reduce government…

Q: “The more progressive a tax system, the greater is the economy’s built-in stability.” Explain this…

A: A progressive tax system refers to a tax system where higher taxes are paid by individuals who have…

Q: f Congress and the president decide an expansionary fiscal policy is necessary, then they should…

A: Fiscal policy is related to government spending and taxes. Fiscal policy is a policy in which the…

Q: #1 Identify each of the following as expensionary or contractionary and show their effect on the…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the very first question with 1st…

Q: Complete the table below for the economy of Smetana. Round your answers for the Debt / GDP % to 1…

A: When government expenditure exceeds its income , it is shown by the concept of budget deficit. When…

Q: For each of the following fiscal policy proposals, determine whether the primary focus is on…

A: Let us examine each fiscal policy proposal individually to establish if it is primarily concerned…

Q: "Define in a formula, the federal budget deficit."

A: A budget deficit is defined as the excess of government expenditure over government receipts.

Q: Fiscal policy is when changes are made toandto accomplish macroeconomic goals. Select an answer and…

A: Fiscal policy: These are the policy measures that are being introduced by the government of a…

Q: What are the effects of the business cycle on the government's budget? automatically tax revenues…

A: The government spending plan, also known as the national budget, is a file that lists the various…

Q: During a recession, if counter-cyclical fiscal policy were implemented we would expect the…

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

Q: Do I have this queshtion right I think its positive. I'm not sure if I'm correct.

A: Economic growth.From the given graph, if these countries have gross government debt is excess of…

Q: Cite the five major demand-side components of GDP. Then, identify the major elements affected by…

A: Gross domestic product of a country is the market value of all final commodities and services that…

Q: Assign the correct label to the corresponding events/ policy actions that occurred during the…

A: The use of a collection of revenue and expenditure being incurred by the government in order to…

Q: 4. In the 1960's the U.S economy faced inflationary pressures. Assume that in 1968 there was an AD…

A: The values being given in the question are as follows:- Excess Aggregate demand is given to be as =…

Question

Refer to the data in the table above. The direction of fiscal policy became more contractionary from:

Select one:

a. 2005 to 2006

b. 2001 to 2002

c. 2002 to 2003

d. 2003 to 2004

Actual Budget Cyclically-Adjusted
Deficit (-) or
Surplus (+)
+1.4%
Budget Deficit (-)
Year
1999
or Surplus (+)
+0.1%
2000
+2.5
+1.1
2001
+1.3
+1.1
2002
-1.5
-1.1
2003
-3.4
-2.7
2004
-3.5
-2.4
2005
-2.6
-1.8
2006
-1.9
-1.8
2007
-1.3
-1.4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which legislative action shifted the budget power from the executive branch to the legislative branch? a. Budget and Accounting Act of 1921 b. Congressional Budget and Impoundment Control Act of 1974 c. Balanced Budget and Emergency Deficit Control Act of 1985 d. Budget Enforcement Act of 1990
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues B. Federal government expenditures C. Federal budget deficit D. All of the above are components of federal fiscal policy
Which of the following Government agents are responsible for carrying out Fiscal Policy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The Federal Reserve b Тахpayers C Firms d The Congress and President.
Using examples from 2008-currently, explain fiscal policy. In your answer be sure to include what Fiscal Policy is and how some of the recent policies have impacted the economy (GDP and Budgets) in both the short term and the long term.
What do you understand by the term Fiscal Policy?
The overall effects of contractionary fiscal policy are a __________ in income, _________ in money demand, ____________ in the interest rate and a ________ in investment. a decrease, decrease, increase, decrease. b decrease, decrease, decrease, increase. c decrease, decrease, decrease, decrease. d none of the listed options. e decrease, increase, decrease, increase.
One criticism of the fiscal policy ineffectiveness is because: A.the velocity of money is predictable. B.it is dependent on Congress' approval. C.the crowding-out effect increases investment. D.prices and wages are sticky in the short run.
None
how does the fiscal policy handle the major macroeconomic failures of unemployment?
please answer the following question: 1.The fact that it takes time for government officials to recognize an economic problem in is one reason for time lags in fiscal policy making. a)true b)false
Question 4 Using AD\ AS model, show how the fiscal policy work in case of recession.