11.  All of the following are examples of implementation lags associated with fiscal policy,         except:   the time it takes for individuals to increase consumption when personal taxes are lowered. the time it takes for businesses to increase investment when corporate taxes are lowered. the delays in the working of the multiplier effect through the economy. the delays in the actual formulation of fiscal policy.

Q: According to Bernanke’s policy guide,   Bernanke’s policy guide: 1/4 point reduction in long-term…

A: Fiscal policy is described in macroeconomics as a set of policies implemented by a government to…

Q: If government policy makers were worried about the inflationary potential of the economy, which of…

A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…

Q: 3.3 Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a…

A: Fiscal policy includes taxation and government spending. Expansionary fiscal policy-reducing taxes…

Q: Refer to the "In the News" and the figure to answer two questions IN THE NEWS Fiscal Policy in the…

A: Financial restraint is a bunch of financial strategies that set out lease open doors in the banking…

Q: Question 44 During normal times, discretionary fiscal policy O is very effective. O is probably not…

A: During normal times, discretionary fiscal policy is not much effective in stabilizing economy, as…

Q: How could the government deal with the crowding out effect generated from applying the expansionary…

A: Crowding out effect occurs when the increase in spendings or investment by the government crowds out…

Q: Explain and show the consequence for fiscal policy if the marginal propensity to consume is a…

A: Fiscal policies are the public authority made approaches made to control, fortify and support the…

Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: Expresses in detail the effects of expansionary and contractionary fiscal policy on income and the…

A: In an economy, fiscal policies are implemented by the government to influence the aggregate demand…

Q: 8. Which of the following describes crowding out accurately? A) Government, businesses and consumers…

A: Hello, thank you for the question. Since there are  more than three multiple choice questions asked…

Q: Based on your understanding of the multiplier effect and the crowding-out effects, do you think that…

A: The macroeconomic equilbrium in an economy occurs at the point where the aggregate demand in the…

Q: Many economists think discretionary fiscal policy is of limited effectiveness in stabilizing the…

A: Discretionary fiscal policy is the policy of government that alters the spending of government or…

Q: _____ are elements of fiscal policy that automatically change when income changes.   a. Budget…

A: Fiscal policy is one of the tools of the government to influence macroeconomic conditions such as…

Q: If the propensity to consume decreases from 95% to 80%, then Fiscal stimulus multiplier does what?…

A: Fiscal stimulus Multiplier, is also known as the Government expenditure multiplier and is given by…

Q: 1. Discretionary fiscal policy is the direct result of deliberate actions by policy makers rather…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Define what is 'automatic stabiliser' in fiscal policy, and provide 2 examples

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…

Q: Question: Which of the following is an example of a fiscal policy that has no inside lag? a- A…

A: Fiscal policy- there is a change in government expenditure and taxes to impact the money supply.…

Q: A government spends $500,000 as an expansionary fiscal policy. The spending multipler is 2. a) if…

A: Changes in the price level, affects the spending multiplier.

Q: One of the arguments against using fiscal policy is __________. Group of answer choices tax cuts…

A: The case against discretionary fiscal policy rests on two arguments: First, the possibility of…

Q: Assume that the economy is facing a GDP gap. 1. Write a report explaining why that might have…

A: There are two types of GDP gaps i.e. rrecessionary output gap and the inflationary output gap. In…

Q: Discuss the challenges of predicting the effects of discretionary fiscal policy on aggregate…

A: fiscal policy refers to the policy of taxation and expenditures of government. Government makes…

Q: 8) Which of the following would not be considered an automatic stabilizer? A) legislation increasing…

A: Automatic stabilizers can be defined as the automatic changes that occur in the government imposed…

Q: Assign the correct label to the corresponding events/ policy actions that occurred during the…

A: The use of a collection of revenue and expenditure being incurred by the government in order to…

Q: For questions 34-39 choose whether each is an example of: fiscal policy a. discretionary b.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Clearly distinguish between expansionary and contractionary fiscal policy.

A: Introduction Fiscal Policy Fiscal policy is controlled by the central government of the country.…

Q: How relevant is the multiplier concept to the implementation of expansionary and contractionary…

A: Spending multiplier: - it is a fraction that shows the magnitude of the change in national income…

Q: Take into account the economy in which the current income level is $ 600 billion, the government…

A: To increase income, government spending has to increase. Increase in government spending = required…

Q: a. A recession. b. A stock market collapse that hurts consumer and business confidence. c.…

A: * ANSWER :-  (a)

Q: Some Economists argue that Fiscal policy have no effects in the long run on employment and aggregate…

A: There are various responsibilities of government and central bank towards the economy. The overall…

Q: In mid-2001, the Bush administration won congressional approval for lower income tax rates. One…

A: Supply-side policies are based on the concept that tax cuts for producers and providers of commodity…

Q: What is the impact of using Fiscal policy tools on an economy - more specifically aggregate demand…

A: The aggregate demand is the aggregate demand of all the goods and services produced in the economy.…

Q: discretionary fiscal policy and nondiscretionary or built-in stabilization policy.

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: By using graphs, show and explain the effects of an expansionary fiscal policy on the goods market…

A: Expansionary fiscal policy is defined as how the government initiates with spending more and even…

Q: Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy,…

A: Contractionary fiscal policy: Contractionary fiscal policy refers that when the government decreases…

Q: Determine whether the following represent an example of discretionary fiscal policy or an automatic…

A: Automatic stabilizers and discretionary fiscal policies play an important role in controlling the…

Q: Answer the questions below. a, Discuss why the aggregate supply (AS) curve is relatively flat within…

A: a) When the aggregate output lies in the low range, it implies that the economy has a large amount…

Q: Expansionary fiscal policy increases the government budget deficit. True, False, or Uncertain?…

A: Fiscal policies are the policies that are managed by the government with the aim of influencing…

Q: As the economy declines into recession, the collection of personal income tax revenues automatically…

A: A recession is a significant slowing or contraction of the economy. A recession typically results…

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.