Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 6CQ
To determine
Implication of fiscal policy when economy is unstable.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
How would a Keynesian Economist use Fiscal Policy to fight a Recession? Please do not
write about Monetary Policy here, only Fiscal Policy.
According to Keynesian economics, what impact would a balanced budget amendment to the constitution requiring the federal government to balance its budget annually have on the economy?
Using the concept in Keynesian economics, which one of the following may not be an effective fiscal
policy when there is inflation?
a) increasing aggregate demand
b) increasing corporate taxes.
c) increasing personal taxes.
d) decreasing government purchases.
Chapter 11 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- If stability of the economy is the primary objective of Fiscal Policy, then an Annually Balanced Budget (Government Expenditures = Tax Revenues) is the best policy approach. True or False?arrow_forwardAccording to Keynesian economics, what impact would a balanced budget amendment to the constuition requiring the federal government to balance its budget annually have on the economy?arrow_forwardFrom 2008, how might monetary policy (as reflected in the OCR) have affected the degree of crowding out resulting from fiscal policy (as reflected in government expenditure)?arrow_forward
- According to the classical macroeconomic model, expansionary fiscal policy has an inflationary effect True or falsearrow_forwardIf government policy makers were worried about the inflationary potential of the economy, which of the following would be a correct fiscal policy change?arrow_forwardWhich of the following would be categorised as being fiscal policy? A B C E An increase in training places for apprentices A reduction in the rate of income tax A rise in base interest rates A reduction in the money supply Competition policyarrow_forward
- The economist views the budget as a public policy making tool? True or falsearrow_forwardIf households and firms are pessimistic about the economy and very reluctant to increase investment and consumption during economic recessions even if interest rates fall, then Fiscal policy will be more effective than monetary policy Both fiscal and monetary policy will be equally effective Monetary policy will be more effective than fiscal policyarrow_forwardDiscussion 4 Discuss the "FISCAL POLICY: A KEYNESIAN PERSPECTIVE" was John Maynard Keynes Right? (pages 289-291 Appendix), thout the cOurse in ofher words, thearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning