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

Q: The GDP must grow by at least $60 billion in order to achieve the target growth rate. The country is…

A: The gross domestic product(GDP) refers to the market value of all the final commodities(goods and…

Q: 6. What fiscal policy actions would you recommend in the following instances? (Draw a diagram that…

A: Fiscal policies are the measures used by the government to affect the economy. The major fiscal…

Q: Show and explain how an expansionary fiscal policy can cause crowding-out effect by using aggregate…

A: The phenomenon, whereby increased government expenditure may lead to a squeezing of private…

Q: 3. The balanced budget multiplier For both political and macroeconomic reasons, governments are…

A: Given; Income equation:-                            Y=11-c1c0+I+G-c1T a) When G increases by one…

Q: Which fiscal measure should be adopted in correcting inflationary Gap? (A) Reduction in Public…

A: The inflationary gap is the measurement of the gap between the current level of the Gross domestic…

Q: 8.  An increased federal budget deficit during an expansion serves as an automatic       economic…

A: The situation when the expenses tend to exceed revenue which tends to indicate the economy's…

Q: 1. What is the difference between contractionary and expansionary fiscal policies?

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

Q: an economy moves into a recession, causing that country to produce less than potential

A: Automatic stabilizers refer to the inbuilt mechanisms in a government budget.

Q: 5. (Evolution of Fiscal Policy) What did classical economists assume about the flexibility of…

A: According to classical economists, a change in the prices, salaries, and interest rates of an…

Q: True/False 1) Unemploymen benefits are an example of fiscal policy.2) According to Ricardian…

A: A transfer payment is a redistribution of income facilitated by the government of an economy as it…

Q: 11.  All of the following are examples of implementation lags associated with fiscal policy,…

A: fiscal policy is the use of government revenue collection and expenditure to influence a country's…

Q: 15. If consumers in a country spend 3/4 of their disposable income. If their government increases…

A: MPC=34MPC=0.75

Q: 7. Non-discretionary fiscal policy designed to counteract a reduction in aggregate demand might…

A: A non-discretionary fiscal policy refers to the government action or policy thay acts to deal with…

Q: Define fiscal policy. Determine whether each of the following, other factors held constant, would,…

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

Q: 2. Fiscal policy Suppose a hypothetical economy is currently in a situation of deficient aggregate…

A: There is an output gap of $32 billion. To fill out this o/p gap or to help the economy to come out…

Q: a) Define what are  expansionary and contractionary discretionary fiscal policies.

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: 10. Describe the characteristics of fiscal policy from 2000 to 2018. a. From 2000 to 2004, fiscal…

A: since you have asked a multipart question and according to our policy we can only solve the first 3…

Q: QUESTION : Discuss the impact of fiscal stimulus on the business fixed investment and residential…

A: Answer:

Q: Actual Budget Deficit (-) or Surplus (+) Cyclically Adjusted Deficit (-) or Surplus (+) +0.1% Year 1…

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

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: 10.We discussed four problems that complicate the application of fiscal policy.    a. List and…

A: Four problems associated with Fiscal Policy are:Policy LagsThe question in this context is related…

Q: 5 In order to boost the economy, the government should implement expansionary fiscal policy by…

A: In order to boost the economy, the government should implement expansionary fiscal policy .

Q: What are the automatic stabilizers in the fiscal policy? How does fiscal policy destabilize the…

A: A policy through which the government tends to adjusts its levels of spending and rates of tax for…

Q: Suppose that an economy faces a pandemic crisis. 1. Graph Aggregate demand and Aggregate supply I…

A: As we know that aggregate demand and aggregate supply curves, of the short-run, are drawn only…

Q: 1-Expansionary fiscal policy is ineffective if* a-There is long run equilibrium b-There is complete…

A: Fiscal policy can be expansionary if government attempts to raise output either by increasing…

Q: 07. What factors make an expansionary "stimulus" fiscal policy effective? One answer     a) A…

A: The fiscal policy refers to a policy which is used to influence the aggregate demand in the economy.…

Q: Fiscal Policy and how it can be implemented in a recessionary gap.   Recently, COVID-19 has…

A: As we know that Pandemic pushed the many economy years back almost all countries . There growth rate…

Q: Critical thinking question Does an active fiscal policy help or hinder long-run growth in the…

A: a. Fiscal policy helps in achieving the following growth parameters of an economy.

Q: 3. The Japanese economy is stuck in a recessionary gap. The proper fiscal policy could include a(n)…

A: Recession is the situation where the economic activity falls continuously and the unemployment and…

Q: Using the short-hand symbols G, Y, Md, r and I to demonstrate the effects of an expansionary fiscal…

A: The expansionary fiscal policy i.e. increase in public spending and reduction on taxes are the most…

Q: 9.  The lag associated with fiscal policy can:   magnify economic fluctuations. stimulate output…

A: Fiscal Policy:- The use of spending of government and taxation policies in order to impact market…

Q: Topic: Fiscal Policy 1. A government collects $0.35 on every new dollar of income. Of the remaining…

A: The marginal propensity to save shows the percentage of new income saved. The marginal propensity to…

Q: The Government and Fiscal Policy (chapter 16) Question -- When an economy is already at full…

A: Expansionary fiscal policy is government's initiative to provide increased money supply or spending…

Q: 13. When the Turkish government wants to allow only for automatic stabilizers to work in a…

A: Automatic stabilizers are used when the governments forsees an economic condition and tries to take…