Gg.66. What are the two types of fiscalpolicy and what timing problemspotentially are associated with them?Provide an example where fiscalpolicy was used, and discuss both theshort term and long termeffectiveness of this action in youropinion. Please post your initialresponse to the discussion questionby Wednesday in the form of aparagraph and multiple responsesmade on at least two different daysto your instructor or classmates' poststhroughout the balance of the week.

Fiscal policy is a government's use of taxation, government spending, and transfer payments to…

Answered: What are the two types of fiscal policy…

What are the two types of fiscal policy and what timing problems potentially Drovido are associated with them? xamplo oro ficcal ficcal

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Gg.66.

What are the two types of fiscal
policy and what timing problems
potentially are associated with them?
Provide an example where fiscal
policy was used, and discuss both the
short term and long term
effectiveness of this action in your
opinion. Please post your initial
response to the discussion question
by Wednesday in the form of a
paragraph and multiple responses
made on at least two different days
to your instructor or classmates' posts
throughout the balance of the week.

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2. (40 points) In their 1999 Applied Economics Letters paper, Zakir and Wunnava proposed the following specification in identifying the factors affecting infant mortality rates (IMR): IMR₁ = B₁+ B₁FERTILITY, + ß₂LNGNP; +ß¸LABOUR; + ßLABOUR² + B₂LITERACY, + BHEALTH; +ε₁ Where i=1,2,..., 117 (i.e., based on a cross-section of 117 countries) IMR = infant mortality rate-number of deaths before age 1 per 1000 live births FERTILITY = number of births per woman LNGNP = the natural logarithm of per capita GNP (note that GNP is measured in '000 of $s) LABOUR = percentage of women in the labor force LITERACY = female literacy rate HEALTH = expenditure on health care as percentage of GNP Following are their estimated regression results along with sample means (based on a cross-section of industrialized and third world countries for 1993). Mean of IMR: 44.983 Variable name Estimated t-ratio Mean coefficient FERTILITY 10.812 7.848 3.5556 LNGNP -6.998 -3.134 8.2585 LABOUR 4.135 3.359 40.051 LABOUR²…
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