The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 24, Problem 1P

To determine

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Expert Solution & Answer

Explanation of Solution

Fiscal policy is similar to the monetary policy applied by central banks to maintain the flow of cash in the economy. The reason behind the increase in deficit is considered expansionary fiscal policy is thatit expands the money supply in the economy to increase the economic growth by combating the inflation. The expansionary fiscal policy will increase the government spending or reduces the taxes. These steps will lead to shortage of funds and will diminish the surplus.

The fiscal government actions that decrease the deficits are considered as contractionary fiscal policy. This is because a decrease in deficit reduces the money supply, which decreases the demand. This will in turn reduce the purchasing power of consumers as well. The contractionary fiscal policy is that situation when the consumers are left with less amount to spend.

Economics Concept Introduction

Fiscal policy:

That means in economics through which a federal government keeps a check and adjusts its expenditure level and tax rates, or duty charge is referred as fiscal policy. This policy helps to monitor and guide the country's economic situation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

16:10 ← BEC 3701 - Assignments-... KWAME NKRUMAH UNIVERSITY TEACHING FOR EXCELLENCE SCHOOL OF BUSINESS STUDIES DEPARTMENT OF ECONOMICS AND FINANCE ADVANCED MICRO-ECONOMICS (BEC 3701) Assignments INSTRUCTIONS: Check instructions below: LTE 1) Let u(q1,q2) = ln q₁ + q2 be the (direct) utility function, where q₁ and q2the two goods. Denote P₁ and P2 as the prices of those two goods and let M be per period money income. Derive each of the following: a) the ordinary or Marshallian demand functions q₁ = d₂ (P₁, P₂, M) for i = 1,2 [3 Marks] b) the compensated or Hicksian demand functions q₁ = h₂ (P₁, P2, M) for i = 1,2 [3 Marks] c) the Indirect Utility Function uº = v(P₁, P2, M) [3 Marks] d) the Expenditure Function E(P1, P2, U°) [3 Marks] e) Draw a diagram of the solution. There should be two graphs, one above the other; the first containing the indifference curves and budget constraint that characterize the solution to the consumer's choice problem; the second characterizing the demand…

How would you answer the question in the News Wire “Future Living Standards”? Why?

al Problems (v) T (ix) F 1. Out of total number of 2807 women, who were interviewed for employment in a textile factory, 912 were from textile areas and the rest from non-textile areas. Amongst the married women, who belonged to textile areas, 347 were having some work experience and 173 did not have work experience, while for non-textile areas the corresponding figures were 199 and 670 respectively. The total number of women having no experience was 1841 of whom 311 resided in textile areas. Of the total number of women, 1418 were unmarried and of these the number of women having experience in the textile and non-textile areas was 254 and 166 respectively. Tabulate the above information. [CA. (Foundation), May 2000 Exactly (14) of the total employees of a sugar mill were these were married and one-half

Answer 2

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 24, Problem 1P

To determine

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Expert Solution & Answer

Explanation of Solution

Fiscal policy is similar to the monetary policy applied by central banks to maintain the flow of cash in the economy. The reason behind the increase in deficit is considered expansionary fiscal policy is thatit expands the money supply in the economy to increase the economic growth by combating the inflation. The expansionary fiscal policy will increase the government spending or reduces the taxes. These steps will lead to shortage of funds and will diminish the surplus.

The fiscal government actions that decrease the deficits are considered as contractionary fiscal policy. This is because a decrease in deficit reduces the money supply, which decreases the demand. This will in turn reduce the purchasing power of consumers as well. The contractionary fiscal policy is that situation when the consumers are left with less amount to spend.

Economics Concept Introduction

Fiscal policy:

That means in economics through which a federal government keeps a check and adjusts its expenditure level and tax rates, or duty charge is referred as fiscal policy. This policy helps to monitor and guide the country's economic situation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 24, Problem 1P

To determine

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Expert Solution & Answer

Explanation of Solution

Fiscal policy is similar to the monetary policy applied by central banks to maintain the flow of cash in the economy. The reason behind the increase in deficit is considered expansionary fiscal policy is thatit expands the money supply in the economy to increase the economic growth by combating the inflation. The expansionary fiscal policy will increase the government spending or reduces the taxes. These steps will lead to shortage of funds and will diminish the surplus.

The fiscal government actions that decrease the deficits are considered as contractionary fiscal policy. This is because a decrease in deficit reduces the money supply, which decreases the demand. This will in turn reduce the purchasing power of consumers as well. The contractionary fiscal policy is that situation when the consumers are left with less amount to spend.

Economics Concept Introduction

Fiscal policy:

That means in economics through which a federal government keeps a check and adjusts its expenditure level and tax rates, or duty charge is referred as fiscal policy. This policy helps to monitor and guide the country's economic situation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 24, Problem 1P

To determine

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Expert Solution & Answer

Explanation of Solution

Fiscal policy is similar to the monetary policy applied by central banks to maintain the flow of cash in the economy. The reason behind the increase in deficit is considered expansionary fiscal policy is thatit expands the money supply in the economy to increase the economic growth by combating the inflation. The expansionary fiscal policy will increase the government spending or reduces the taxes. These steps will lead to shortage of funds and will diminish the surplus.

The fiscal government actions that decrease the deficits are considered as contractionary fiscal policy. This is because a decrease in deficit reduces the money supply, which decreases the demand. This will in turn reduce the purchasing power of consumers as well. The contractionary fiscal policy is that situation when the consumers are left with less amount to spend.

Economics Concept Introduction

Fiscal policy:

That means in economics through which a federal government keeps a check and adjusts its expenditure level and tax rates, or duty charge is referred as fiscal policy. This policy helps to monitor and guide the country's economic situation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 24, Problem 1P

To determine

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Expert Solution & Answer

Explanation of Solution

Fiscal policy is similar to the monetary policy applied by central banks to maintain the flow of cash in the economy. The reason behind the increase in deficit is considered expansionary fiscal policy is thatit expands the money supply in the economy to increase the economic growth by combating the inflation. The expansionary fiscal policy will increase the government spending or reduces the taxes. These steps will lead to shortage of funds and will diminish the surplus.

The fiscal government actions that decrease the deficits are considered as contractionary fiscal policy. This is because a decrease in deficit reduces the money supply, which decreases the demand. This will in turn reduce the purchasing power of consumers as well. The contractionary fiscal policy is that situation when the consumers are left with less amount to spend.

Economics Concept Introduction

Fiscal policy:

That means in economics through which a federal government keeps a check and adjusts its expenditure level and tax rates, or duty charge is referred as fiscal policy. This policy helps to monitor and guide the country's economic situation.

Answer 6

Chapter 24, Problem 1P

To determine

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Expert Solution & Answer

Explanation of Solution

Fiscal policy is similar to the monetary policy applied by central banks to maintain the flow of cash in the economy. The reason behind the increase in deficit is considered expansionary fiscal policy is thatit expands the money supply in the economy to increase the economic growth by combating the inflation. The expansionary fiscal policy will increase the government spending or reduces the taxes. These steps will lead to shortage of funds and will diminish the surplus.

The fiscal government actions that decrease the deficits are considered as contractionary fiscal policy. This is because a decrease in deficit reduces the money supply, which decreases the demand. This will in turn reduce the purchasing power of consumers as well. The contractionary fiscal policy is that situation when the consumers are left with less amount to spend.

Economics Concept Introduction

Fiscal policy:

That means in economics through which a federal government keeps a check and adjusts its expenditure level and tax rates, or duty charge is referred as fiscal policy. This policy helps to monitor and guide the country's economic situation.

Answer 7

Chapter 24, Problem 1P

To determine

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Answer 8

Expert Solution & Answer

Explanation of Solution

Fiscal policy is similar to the monetary policy applied by central banks to maintain the flow of cash in the economy. The reason behind the increase in deficit is considered expansionary fiscal policy is thatit expands the money supply in the economy to increase the economic growth by combating the inflation. The expansionary fiscal policy will increase the government spending or reduces the taxes. These steps will lead to shortage of funds and will diminish the surplus.

The fiscal government actions that decrease the deficits are considered as contractionary fiscal policy. This is because a decrease in deficit reduces the money supply, which decreases the demand. This will in turn reduce the purchasing power of consumers as well. The contractionary fiscal policy is that situation when the consumers are left with less amount to spend.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Fiscal policy:

That means in economics through which a federal government keeps a check and adjusts its expenditure level and tax rates, or duty charge is referred as fiscal policy. This policy helps to monitor and guide the country's economic situation.

Answer 12

Ch. 24 - Prob. 1P Ch. 24 - Prob. 2P Ch. 24 - Prob. 3P Ch. 24 - Prob. 4P Ch. 24 - Prob. 5P Ch. 24 - Prob. 6P Ch. 24 - Prob. 7P Ch. 24 - Prob. 8P Ch. 24 - Prob. 9P Ch. 24 - Prob. 10P

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

To explain: The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.

Explanation of Solution

Want to see more full solutions like this?

Chapter 24 Solutions

To explain:

The reason for government actions increasing deficits is considered expansionary fiscal policy and government actions decreasing deficits is considered contractionary policy.