what is the role of aggregate demand in eliminating the Gdp gap?how  does the slope of the AS curve affect the fiscal policy actions necessary to eliminate the GDP gap.

Q: f social security payments to retirees increase, AD will increase and raise Y*

A: Social Security Benefits(SSB) are the benefits which provide some replacement income for disabled…

Q: The U.S. debt problem could be solved, but each solution comes with unintended consequences. For…

A: Answer: Printing more money causes inflation in the economy. As a result, the wages will increase.…

Q: Suppose, the Australian economy is in good shape (operating at its productive capacity Y*). However,…

A: Due to increase in spending and fiscal expansion,interest rates would be lowered.

Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by…

A:

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: 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: Compare expansionary and contractionary fiscal policy.

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

Q: Assume the Philippines government adopted fiscal policy measures to reduce the severety of typhoon…

A: Typhoon Haiyan, also known as Super Typhoon Yolanda in the Philippines, was one of the most intense…

Q: Use aggregate demand, aggregate supply, and LRAS to show both a recessionary gap and an inflationary…

A: A recessionary gap occurs when the aggregate demand curve intersects the short-run aggregate supply…

Q: Which of the following will not undermine the effectiveness of fiscal policy, and prevent it from…

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

Q: when there is a budget deficit, wha happens to the S+KI curve

A: Understanding the effects of a budget deficit on the macroeconomic factors of savings, capital…

Q: Explain the effectiveness of the fiscal policy in economics.

A: The fiscal policy is the means by which the public power changes its spending and pay to influence…

Q: Why do you think that expansionary fiscal policy can fail during a recession?

A: Recession is a situation in the economy, when there is general decline in the economic activity. For…

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: 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: What is expansionary fiscal policy? What is contractionary fiscal policy? Does expansionary fiscal…

A: In Keynesian macroeconomic theory, aggregate demand plays a very major role in stabilizing the…

Q: Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending…

A: NASA is maintained and managed by the U.S government and the universities are maintained by the…

Q: How will a contractionary fiscal policy affect a budget deficit? A.) Debts will…

A: Budget deficit refers to the amount of expenditure of a government that surpasses/exceeds the total…

Q: Use aggregate demand, aggregate supply, and LRAS to show both a recessionary gap and an inflationary…

A: Aggregate demand is the sum of consumption,  investment,  government spending and net export. This…

Q: Briefly analyse the various policy measures that a government might have to undertake to deal with…

A: A fiscal deficit is a discrepancy between a government's revenue and expenditures. Spending over its…

Q: Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain…

A: In an economy, headline fiscal deficit is the government over expenditure when receipts are less…

Q: If the total receipts are $1200 billion and total expenditure is $1500 billion then how much will be…

A:

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: Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

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

A: The objective of the question is to determine how much the aggregate demand needs to increase to…

Q: shared good or service for which it would be impractical to make consumers pay individually and to…

A: 1) Public goods are the good that have the characteristics of non rivalry (use by one person does…

Q: Explain fiscal policy and its role in stabilizing economies during recessions.

A: Fiscal policy is an instrumental component in the hands of legislatures to influence a country's…

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…