Why Krugman believe that fiscal austerity in france or more generally in Europe would fail?

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: Should fiscal policy encourage more consumption or more saving? Does it matter? I need a reason why.

A: The fiscal (F) and monetary (M) policies help to control and maintain economic fluctuations such as…

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

Q: Differentiate between the following terms. Expansionary fiscal policy and expansionary monetary…

A: Expansionary fiscal policy is the policy which focuses on increasing aggregate demand by increasing…

Q: Can governments use expansionary fiscal policy or expansionary monetary to effectively fight…

A: Answer: The use of fiscal policy and monetary policy is an effective tool to control the…

Q: Please discuss the need and use of fiscal policy in countries such as the UK during the crisis. Will…

A: The financial and economic crisis struck developing nations hard, albeit the effects were delayed.…

Q: Do you think that conventional fiscal policy is different from islamic fiscal policy?

A: Introduction The term "fiscal policy" describes how the government uses its tax and spending laws to…

Q: What are the implications of the current fiscal stimulus and low interest on the future of our…

A: A stimulus package is defined as a coordinated measure by the government to lift the economy out of…

Q: what are the objectives of fiscal policy?

A: A fiscal policy is a policy of taxation and spending decisions taken by the government. The main…

Q: What is the reason why fiscal policy should be in tune with monetary policy when the economy is in…

A: Fiscal policy can be defined as government policies and the spending pattern that the government…

Q: How does fiscal policy determine the rules of the market? Who controls the rules of the market?

A: Fiscal coverage refers to the government's use of taxation and expenditure measures to influence the…

Q: What is an expansionary gap? What fiscal policy might close that gap?

A: Answer: Introduction: Expansionary gap: when the actual output level exceeds the potential output…

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: Based on the Krugman text and your reader articles, what position do you take on the current fiscal…

A: Based on economic theory and empirical evidence, there are arguments for both stimulus and austerity…

Q: If stability of the economy is the primary objective of Fiscal Policy, then an Annually Balanced…

A: An annual balanced budget refers to when the spending of the government during a fiscal year equals…

Q: The economist views the budget as a public policy making tool? True or false

A: False. Reason- Economists view the budget as the opportunity cost. They see budget as the…

Q: Will consumers always spend the same percentage of any tax cut?  Why might they spend more or less…

A: Answer - Consumers will not always spend the same percentage of a tax cut. This is mean that,…

Q: From 2008, how might monetary policy (as reflected in the OCR) have affected the degree of crowding…

A: Monetary policy refers to change in money supply and money demand by central banks through open…

Q: Was fiscal policy effective when the US economy was experiencing stagflation during the 1970s? Why…

A: Stagflation alludes to a circumstance when the economy was confronting high inflation and high…

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: What are the reasons of fiscal policy not being effective in an economy according to classical…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: From a political economy perspective, why does fiscal policy have a built-in expansionary bias?

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

Q: How did John Maynard Keynes economic theory influence the 20th Century fiscal policy?

A: Fiscal policy: - it is a tool of the government of a country in which the government adjusts its…

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: Why do critics charge that fiscal policy has a “big-government bias”?

A: Answer-Fiscal policy is the notion that government should actively stimulate the economy in bad…

Q: What is classes as an expansionary fiscal policy?

A: Fiscal policy is the government-imposed policy used to change economic conditions like demand,…

Q: Who Handles Fiscal Policy?

A: The objective of the question is to identify the entity or entities responsible for managing fiscal…

Q: How would a Keynesian Economist use Fiscal Policy to fight a Recession? Please do not write about…

A: "Recession means reduction or fall in the economic activity and this fall is visible in real GDP,…

Q: Briefly analyse two possible factors that will lead to GDP understating the level of economic…

A: GDP measures the final value of goods and services produced in an economy. However, economic welfare…

Q: Assume there is no discretionary increase in government spending. Explain how an improving economy…

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Q: how does the fiscal policy work?

A: Government can control the price and output from the demand side in the short with the help of of…