Year1234Actual Budget, Percent of GDP(-deficits, +surpluses)Multiple ChoicepagRefer to the data for a fictional economy. The changes in the budget conditions between Year 2 and 3 best reflectHamai0-3-5-2+2a tax increase.demand-pull inflationan expansionary fiscal policyCyclically-Adjusted Budget,Percent of GDP (-deficits,+surpluses)00-2a contractionary fiscal policy.+1

Fiscal policy refers to the policy of government to influence economy through taxation and…

Year 1 2 3 4 Actual Budget, Percent of GDP (-deficits, +surpluses) Multiple Choice Refer to the data for a fictional economy. The changes in the budget conditions between Year 2 and 3 best reflect gang Hamai 0 -3 -5 -2 +2 a tax increase. demand-pull inflation an expansionary fiscal policy Cyclically-Adjusted Budget, Percent of GDP (-deficits, +surpluses) 0 0 -2 -2 +1 a contractionary fiscal policy.

Year 1 2 3 4 Actual Budget, Percent of GDP (-deficits, +surpluses) Multiple Choice Refer to the data for a fictional economy. The changes in the budget conditions between Year 2 and 3 best reflect gang Hamai 0 -3 -5 -2 +2 a tax increase. demand-pull inflation an expansionary fiscal policy Cyclically-Adjusted Budget, Percent of GDP (-deficits, +surpluses) 0 0 -2 -2 +1 a contractionary fiscal policy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Easy beginner econ question. Thank you!
19. Gross investment is the total amount spent on purchases of new capital and on replacing depreciated capital. True or false 21. Fiscal policy has important effects on the level of employment, nominal GDP and on aggregate supply, known as secondary supply effects. True or false 23. An increase in government spending is an expansionary fiscal policy. True or false
Which of the following statements about state budget is wrong? a. Budget may be annual or biennial b. About half of the states have dual budget system - operating budget and capital budget c. Most operate under the balanced budget requirement d. All governors have item veto power
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.
7. The national debt a. Is paid off each fiscal year when the debt is refinanced. b. Will never be paid off in any given year, but it will be entirely paid off when it is refinanced over a number of years. Will be paid off when the budget is finally balanced. Equals the dollar amount of outstanding U.S. Treasury bonds. c d
The question is based on the following information: Item R million 510 540 490 534 Total government revenue Total government expenditure Current government revenue Current government expenditure Non-interest expenditure Cyclically adjusted revenue Cyclically adjusted expenditure The current budget balance is R million. If the balance is negative indicate it using the minus sign in your answer for instance-32 Answer: 500 480 500
Assume that the economy experiences very high increasing energy prices. 1. Explain about what counter cyclical fiscal policy should be used. (Use the macroeconomic approach and include diagram)
4. Consider the following demand and supply schedules of loanable funds. All figures are in billion dollars. Assume zero budget deficits and a closed economy. a. Interest Rate 12% 10% 8% 6% 4% 2% Quantity of Funds Demanded $200 $300 $400 $500 $600 $700 Determine the following equilibrium outcomes: (1) The interest rate. (ii) Private savings. (iii) Government (public) savings. (iv) Private business investment. Quantity of Funds Supplied $1000 $900 $800 $700 $600 $500
Question Please select the correct term for each statement below. National savings, budget deficit, capital, inflow, budget, surplus, and budget balance a. the difference between the amount the government collects and how much it spend. b. when government savigns are combined with all of the privately-held savings from across the country. c. the result when the government spends more money than it takes in through taxes. d. the net amount of funds coming into a country. e. when the government spends less money than it takes in through taxes.
Always use economic terms, diagrams. "Counter-cyclical fiscal policy works. If consumers and businesses lose confidence because of the changing world, the government can fix this economic problem - that is what the Biden $1.9 trillion stimulus was all about. Sure, there might be some issues with the deficit, but given a recovery, the government can pay that deficit off. Also, since we are in a very inflationary period again we might expect counter-cyclical fiscal policy to resolve some of the debt issues." Please explain this comment. (Hint: don't forget to use an AS AD diagram and possibly a business cycle diagram).
explain the effect of the crisis 2007-2009 on USA government's budget in long run?
Public saving is positive when: a. there is a government budget deficit b. after-tax income of households and businesses is greater than consumption expenditures c.there is a government budget surplus d. the government's budget is balanced