Which of the following would be classed as an expansionary fiscal policy?O A.An increase in the money supplyОв.A reduction in the number of goods exempted from VATAn increase in government taxationOD.An increase in government expenditure

Fiscal policy is the one used by the government. The instruments used by the government in a fiscal…

Answered: Which of the following would be classed…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Which of the following are consistent with Expansionary Fiscal Policy Surplus Increase Government Spending Raise Taxes O Deficit Decrease the Federal Debt Decreases GDP Increase GDP Lower Taxes Increase the Federal Debt O Lower Government Spending
Suppose the economy begins at full employment. Label this starting point as point "1." Then, suppose that an upcoming political election causes anxiety among consumers and consumption falls. Show the effects on your graph and label the new equilibrium point "2." Lastly, our government wants the economy to return to full-employment as quickly as possible. Should it intervene? If so, show the impact of successful fiscal policy on your graph. Label this new equilibrium point "3."
Which of the following is an example of a contractionary fiscal policy? O a. The Bangko Sentral ng Pilipinas increased money supply to respond to inflation. O b. The government increased its budget allocation for infrastructure spending. O c. A new law including reforms such as a decrease in income tax and excise tax was promulgated. O d. None of the above
Which organisation controls fiscal policy in Australia? Select one: a. The Reserve Bank of Australia O b. The National Cabinet O. The State Governments O d. The Federal Reserve e. The Federal Government
When the economy is in a recession, the government can use expansionary iscal policy to stimulate and encourage économic growth. Which of the following scenarios represent expansionary fiscal policies from both a supply perspective and a demand perspective? Choose one or more: OA The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. OB. The government lowers tax rates and issues a partial refund of taxes that have already been paid. OC The government raises tax rates and reduces payments of unemployment benefits. OD The government lowers tax rates and undertakes a replacement.of old bridges and roads. Suppose that, during a recession, the government borrows money to provide free wireless Internet access in urban areas. Whichof the following statements are correct? Choose one or more: RA This policy will likely be accompanied by an impact lag as the policy takes time to make its way to the people. O B. The…
Which of the following is an example of fiscal policy? O a Controlling money supply Ob More than one of the choices is an example for fiscal policy. C. Changing reserve requirements. Consumer spending O . Tax increase. Of. Changing the prime rate
5. Demand side fiscal policy is also known as Keynesian Economic Theory * O True O False
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D4. Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be ineffective?
6. Does government borrowing crowd out private spending? Suppose a hypothetical economy is operating at an output level that is well below full employment. In an attempt to increase aggregate demand, the government borrows money in order to increase spending. According to Keynesian economists, how are each of the following items affected by the increase in government spending and borrowing? Increases Decreases Consumer and Business Optimism O O Consumption O Business Investment O
Does the time bomb caused by Social Security and Medicare create a fiscal gap or a generational gap? The time bomb caused by Social Security and Medicare creates _______. A. a fiscal gap and a generational gap B. neither a fiscal gap nor a generational gap C. a fiscal gap only D. a generational gap only

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Which of the following would be classed as an expansionary fiscal policy? O A. An increase in the money supply O B. A reduction in the number of goods exempted from VAT An increase in government taxation O D. An increase in government expenditure