Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 11, Problem 8WNG
(a)
To determine
Illustrate graphically when the fiscal policy destabilizes the economy.
(b)
To determine
Illustrate graphically when the fiscal policy eliminates the inflationary gap.
(c)
To determine
Illustrate graphically when the fiscal policy partly eliminates a recessionary gap.
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Students have asked these similar questions
What is fiscal imbalance?
Fiscal imbalance is the _______ value of the government's commitments to pay benefits minus the _______ value of its tax revenues.
A.
future; future
B.
future; present
C.
present; future
D.
present; present
Which of the following is NOT a problem associated with implementing fiscal policy.
a. Policy lags
b. Information lags
c. Interest rate lags
Od. Impact lags
Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the economy will self correct and return to a position where the GDP gap is zero. If this is correct, why should the government ever intervene with fiscal policy?
a.
It take many years for the GDP gap to close on its own.
b.
This is part of the government's "mission statement" as given in the Constitution.
c.
Fiscal policy is profitable for banks.
d.
People do not trust the theory behind the model.
Chapter 11 Solutions
Macroeconomics
Ch. 11.1 - Prob. 1STCh. 11.1 - Prob. 2STCh. 11.1 - Prob. 3STCh. 11.1 - Prob. 4STCh. 11.3 - Prob. 1STCh. 11.3 - Prob. 2STCh. 11.3 - Prob. 3STCh. 11.4 - Prob. 1STCh. 11.4 - Prob. 2STCh. 11 - Prob. 1QP
Ch. 11 - Prob. 2QPCh. 11 - Prob. 3QPCh. 11 - Prob. 4QPCh. 11 - Prob. 5QPCh. 11 - Prob. 6QPCh. 11 - Prob. 7QPCh. 11 - Prob. 8QPCh. 11 - Prob. 9QPCh. 11 - Prob. 10QPCh. 11 - Prob. 11QPCh. 11 - Prob. 12QPCh. 11 - Prob. 13QPCh. 11 - Prob. 14QPCh. 11 - Prob. 15QPCh. 11 - Prob. 16QPCh. 11 - Prob. 17QPCh. 11 - Prob. 18QPCh. 11 - Prob. 19QPCh. 11 - Prob. 20QPCh. 11 - Prob. 21QPCh. 11 - Prob. 22QPCh. 11 - Prob. 23QPCh. 11 - Prob. 24QPCh. 11 - Prob. 1WNGCh. 11 - Prob. 2WNGCh. 11 - Prob. 3WNGCh. 11 - Prob. 4WNGCh. 11 - Prob. 5WNGCh. 11 - Prob. 6WNGCh. 11 - Prob. 7WNGCh. 11 - Prob. 8WNG
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