All of the following are automatic fiscal stabilizers EXCEPT O a congressionally mandated decrease in tax rates to stimulate the economy. O a decrease in unemployment compensation payments during an expansion. O a decrease in overall tax revenues during a recession. O an increase in unemployment expenditures during a recession.

Q: Which of the following are consistent with Contractionary Fiscal Policy O Lower Government Spending…

A: find below the answer.

Q: Suppose that autonomous consumption (a) is 300, private investment spending (I) is 420, government…

A: It is given that, a=300 I=420 G=400 T=400 MPC(b)=0.8 t=0.25Y

Q: Suppose real GDP is constant. If the government's fiscal policy objective is to keep the size of the…

A: Here, it is given that the economy has constant real GDP and government wants to maintain the size…

Q: Which of the following statements is true? O A balanced budget would not affect income because an…

A: Relationship between the slope of the aggregate supply curve and required government spending…

Q: Which of the following is an example of an automatic stabilizer? Congress legislates lower tax rates…

A: Automatic stabilizer are such policy tools that automatically adjust as per the need and situation…

Q: Suppose this economy is in long-run equilibrium, as shown in the graph. Consider an exogenous…

A: Is lm model shows the two markets in equilibrium one is goods market which represents by IS . Each…

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: Fiscal policy refers to the: O deliberate changes in government spending and taxes to stabilize…

A: Fiscal policy is related to government.

Q: The national debt O decreases when the government runs a budget deficit. O is the total amount of…

A: 1.Here answer is “is the total amount of government debt outstanding” National debt is the debt that…

Q: As we emerge from the pandemic, your friends are concerned with the rising prices they're…

A: Introduction  Fiscal policy has known as budgetary instrument of government policy. It influences…

Q: Council Economic Advisers (CEA)

A: The Council Economic Advisers[CEA] consist of three members. The Chairperson, who is appointed by…

Q: Which of the following is an automatic stabilizer that moves the federal budget toward deficit…

A: Any portion of the government budget that compensates changes in aggregate demand is referred to as…

Q: Which of the following would be classed as an expansionary fiscal policy? O A. An increase in the…

A: Fiscal policy is the one used by the government. The instruments used by the government in a fiscal…

Q: Which of the following statements about how fiscal policy should most appropriately be used in a…

A: The fiscal and monetary policies are used by the governments to achieve certain economic goals. The…

Q: Do you notice any crowding out effect when government implemented aggressive expansionary fiscal…

A: Crowding out occurs when rising interest rates cause a decrease in private investment spending,…

Q: Suppose that the economy is in a recession as a result of a fall in investment spending and real GDP…

A: (a)Following below is the graph depicting the aggregate demand level during recession: From the…

Q: Discuss ONE likely effect of fiscal policy financed via the accumulation of additional government…

A: Government borrowings assumes a significant part in government's accounts to meet its the public…

Q: Which of the following are consistent with Expansionary Fiscal Policy Surplus Increase Government…

A: Fiscal policy is the use of government spending and tax policy to influence the path of the economy…

Q: Fiscal policies that tax one segment of the population in order to pay benefits to another segment…

A: In an economy, government use redistribution of income or resources among the people to reduce…

Q: Which of the following scenarios represent expansionary fiscal policies from both a supply…

A: Economic growth is an increase in the production of goods and services in an economy. Increases in…

Q: Suppose the equilibrium level of income exceeds the full employment level of income and there is…

A: To reduce the price and output in an economy to control the higher inflation. The government needs…

Q: Problems with the federal government budget process include: O a. budgeting that increases the…

A: When economic agents take part in the production process, they get an income in exchange for labour.…

Q: Algonquin's equilibrium price level and real output? The initial equilibrium price level and real…

A: MPC = 0.33 Natural Unemployment rate = 4.5% Price level  (2010=100) Real GDP AD0 Real GDP AD1…

Q: Suppose that autonomous consumption (a) is 300, private investment spending (I) is 420, government…

A: Note, Since you have posted a question with multiple sub parts, we will answer the first Sub part,…

Q: following statements are TRUE?

A: Automatic stabilisers works automatically like progressive taxation etc while discretionary policy…

Q: What is Fiscal Administration as you have understood in this module.

A: Public Fiscal Administration, by and large, alludes to the cycle/is associated with the income age,…

Q: Which of the following is an example of an action where crowding-out could occur? O a) The…

A: A crowding out effect refers to a fall in the private investment in an economy due to an increase in…

Q: Which of the following would be classed as an expansionary fiscal policy? An increase in the money…

A: An expansionary fiscal policy is a policy from government to expand aggregate demand without any…

Q: Golden Age of fiscal policy is has all of the following, except: O under 2 percent inflation rate O…

A: The policy that uses the collection of revenue by the government through taxes or cutting back taxes…

Q: Given MPC (marginal propensity to consume) = 0.75, if the government implements an expansionary…

A: MPC = 0.75 Tax multiplier = (-MPC/1-MPC) = (-0.75/1-0.75)= (-0.75/0.25)= -3.

Q: or disagree and explain your answer . During periods of budget surplus (when G< T), the govern- ment…

A: The following problem has been answered as follows:

Q: Title Actions by the Federal Government that decrease the progressivity of the tax system: a.…

A: Tax system of a country refers to the process through which the tax has been collected by the…

Q: All of the following are classical objections to the use of expansionary fiscal policy during a…

A: In economics, Classical and Keynesian are the two primary schools of economic thoughts that are…

Q: When GDP and incomes are high, the government collects more dollars in tax revenue. When they're…

A: Here, it is given that government collects more tax revenue when there is high GDP and income, while…

Q: Which of the following statements is correct? l.Expansionary fiscal policy is used to remove a…

A: Discretionary fiscal policy: Change in government spending and/or taxes according to the economic…

Q: Which of the following is not an automatic​ stabilizer?     A. Unemployment compensation.   B.…

A: Answer: Correct option: (B) Defense spending. Explanation: Automatic stabilizers are the components…

Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

A: Expansionary Policy: Expansionary monetary arrangement incorporates tax breaks, move installments,…

Q: Which of the following statements is/are ALWAYS true? i A tax is progressive because the tax rate…

A: Answer: Progressive taxation: When the tax rate increases as the taxable income increases it is…

Q: The argument that an increase in aggregate demand, as a result of an increase in government…

A: The Crowding out effect occurs when the government aggressive borrows from the market and creates…

Q: Automatic stabilizers are increases in spending and reductions in taxes that__ ?which one? a.Are…

A: According to Keynesian macroeconomics, the change in aggregate demand is able to affect the output…

Q: Give a numerical example and illustrate the difference between complete crowding out, incomplete…

A: Crowding out is a situation in which an increase in government spending or investment causes a drop…

Q: An advantage of automatic stabilizers over discretionary fiscal policy is that O automatic…

A: Correct : automatic stabilizers are not subject to the same time lags as discretionary fiscal policy…