6. The discretionary fiscal policy initiatives adopted in 2009 were intended mainly to A. increase aggregate supply. B. increase aggregate demand. C. decrease aggregate supply. D. decrease aggregate demand

Q: Explain why fiscal policy actions typically work with a lag

A: The influence that the govt has on the economy via the use of taxation and expenditure is referred…

Q: Which fiscal policy would be the most contractionary? a $100 billion decrease in government spending…

A: The fiscal policy represents the use of government spending and taxation. To foster strong and…

Q: 2. What are some of the predicted effects of repealing DACA on the U.S. federal budget? Repealing…

A: DACA was created to safeguard qualifying immigrant teenagers who arrived in the United States as…

Q: a. Calculate the budget deficit in cach ycar by completing column 4. b. Calculate the primary budget…

A: As it is not mentioned that which questions are to be answered, so the answer of first two subparts…

Q: 70 460 480 500 520 540 560 580 600 Real GDP a. If potential GDP (LAS) IS $580, and the economy is…

A: Recessionary gap exits when the aggregate expenditure is less than the real output at full…

Q: Contractionary fiscal policies do not necessarily decrease a country's debt-to-GDP ratio because O…

A: When talking about debt-to-GDP ratio, it is the economic measurement of total borrowings of the…

Q: 1. If the marginal propensity to consume is 0.8 in an economy, a $20 billion rise in Incomes will do…

A: Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.8) = 1 / 0.2 = 5 It means that, if income increases by $1 ,…

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: 8 How is the above stimulus bill going to be financed? According to the (Keynesian) theory in the…

A:

Q: (2./The accompanying diagram shows the current mac- roeconomic situation for the economy of…

A: The central bank conducts the monetary policy by adjusting the money supply by conducting open…

Q: Suppose, the Australian economy is in good shape (operating at its productive capacity Y*). However,…

A: Due to increase in spending and fiscal expansion,interest rates would be lowered.

Q: If inflation is a major issue in the economy, what would be the correct fiscal policy response from…

A: Government is a higher authority who makes rules and regulations to manage the market activities and…

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: 3. The Keynesian view of fiscal policy Which of the following could cause a decrease in the budget…

A: Restrictive fiscal policy is a tool of government, where it will try to cut its spending. Generally,…

Q: (i) Explain the difference between discretionary fiscal policy and the automatic fiscal policy. (ii)…

A: In an economy, government makes fiscal policies to deal with market uncertainties.

Q: Explain how a larger government budget deficit increase the magnitude of the crowding-out effect?

A: Fiscal policy refers to the changes in federal government purchases and taxes. The government…

Q: 7) If investment falls a lot when the interest rate rises, there will be A) a steeper investment…

A: An item or an asset that is being acquired with the sole goal of appreciation of the asset or…

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: 4. Which factor is NOT a tool of fiscal policy? (Select All that Apply) A. changing the tax rates B.…

A: As there are multiple separate questions answer is provided to the first question i.e. question 4.…

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: “The more progressive a tax system, the greater is the economy’s built-in stability.” Explain this…

A: A progressive tax system refers to a tax system where higher taxes are paid by individuals who have…

Q: 100 T 80 60 40 20 O $100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, in which Tis tax…

A: In this question we have to find out the actual budget deficit, cyclically adjusted budget deficit…

Q: 10.2 In which of the following circumstances is expansionary fiscal policy more likely to lead to a…

A: Answer: (10.2). The fiscal policy is more likely to lead to a short-run increase in investment when…

Q: 1.a) Define fiscal policies and provide examples of 2-3 specific policies from any level of…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: (c) The Bank of England has a target of keeping inflation at 2%. Central banks around the world that…

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

Q: 3. A policy tool that can be used to fight inflation (brought about by excessive aggregate…

A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…

Q: 1. The existence of budget deficits must mean that the government is conducting an expansionary…

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

Q: 1. How does the government spend? 2. How does the government tax? 3. What are budg t deficits?

A: Government basically refers to a structure that governs a group of people, and it generally consists…

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: Counter-cyclical fiscal policy works.  If consumers and businesses lose confidence because of the…

A:

Q: a real GrOSS Dom stic OT Ș18.4 billloh. The debt service payments are $35 million with a 4% interest…

A: Here we calculate the debt-to-GDP ratio by using the given information , so the calculation of the…

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: 3. Suppose the country of Macroland's annual fiscal standing for six recent years. Assume that…

A: Government expenditure: Government expenditure is the amount of money spent by the government on…

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: If the budget deficit is lower than it was last year, we could say that      A) the general…

A: In an economy, budget deficit refers to a situation when government spending is higher than its…

Q: The Canadian federal budget moved from a surplus of 9.6billioninthe2007- 2008 fiscalyeartoade…

A: The given cases have been analyzed as follows:

Q: 14 MULTIPLE SELECT: If the government decides to pursue a expansionary policy, which of the…

A: An expansionary fiscal policy aims to increase the Aggregate demand by decreasing taxes and…