Answered: 2. Give three examples of governments…

2. Give three examples of governments whose use of fiscal policy leaves a lot to be desired? Explain your thinking. 3. What is potential GDP? What role does it play in fiscal and monetary policies?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 30RQ: Under what general macroeconomic circumstances might a government use expansionary fiscal policy?...

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Concept explainers

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.

Question

Don't give me very long answers !!!!!!

2. Give three examples of governments whose use of fiscal policy leaves a lot to be desired? Explain your thinking.

3. What is potential GDP? What role does it play in fiscal and monetary policies?

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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Step 2: Write three examples of governments whose use of fiscal policy leaves a lot to be desired:

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Step 3: Explain Potential GDP:

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Step 4: Explain the role Potential GDP play in fiscal and monetary policies:

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