Q: Find a fiscal deficit if the primary deficit is 780 and the interest payment are 630!
A: Primary deficit The primary deficit can be defined as difference among the current year's fiscal…
Q: Which of the following are consistent with Contractionary Fiscal Policy O Lower Government Spending…
A: find below the answer.
Q: Discuss the impacts of fiscal policy in Fiji during covid-19.
A: COVID-19 is a very serious issue which world is facing these days. As it is a communicable disease,…
Q: All of the following are automatic fiscal stabilizers EXCEPT O a congressionally mandated decrease…
A: An automatic stabilizer is a policy in effect at all the time in an economy and works inverse of the…
Q: Assume MPC=0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Round…
A: Government spending usually denotes the overall amount of the money that the government usually…
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: Do you believe the traditional or the Ricardian view of government debt? Justify your response?
A: The traditional view of government debt assumes that when the government lowers taxes and runs a…
Q: TRUE/FALSE Accordingto Ricardian Equivalence in a strict sense, the tax multiplier is zero.
A: If the tax rate increases then the tax revenue might fall. That means, if the tax rate rises, it is…
Q: Explain each of these statements supported by reasonable reasoning: 1. Zero lag is among the…
A: Automatic stabilisers are ongoing government policies that adjust tax rates and transfer payments…
Q: Assume a government has $28,667 in tax revenues and $40,094 in total government spending. What is…
A: Answer; Government budget balance= Tax revenue-total expenditure Here, Tax revenue = $28,667 and…
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: 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: Please answer all parts of the question! Thank you! 1. Answer each of the questions completely.…
A: a)Automatic stabilizer such as government increase in spending or taxes automatically stabilises the…
Q: Explain what crowding out is and why it reduces the impact of fiscal stimulus.
A: The government adopts fiscal policy to regulate the economy. In this, the government increases its…
Q: Real GDP Which fiscal policy action MIGHT the government take to move the economy from Point A to…
A: Fiscal policy is the policy in which government either change his spending or change tax levels for…
Q: Discuss four problems that complicate the application of fiscal policy, include a description of…
A: Fiscàl policy We show that Fiscàl policy is the government's policy of stabilizing the economy by…
Q: The crowding-out effect of expansionary fiscal policy suggests that Multiple Choice government…
A: Crowding out effect is that when government borrow money from public then the loanable fund supply…
Q: Find the fiscal deficit if the primary deficit is 760 and the interest payments are 120
A: Actually in the question, Primary deficit is given as = 760 Interest payment are = 120 Fiscal…
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: Explain how time lags present an additional problem in fiscal policy.
A: Fiscal policy is policy of expenditure and taxes. Fiscal policy is operated by the government. Lags…
Q: During a recession, if counter-cyclical fiscal policy were implemented we would expect the…
A: Fiscal policy refers to changes in government spending and taxes.
Q: Explain the objectives of the fiscal policy.
A: In an economy, fiscal policy refers to the government action and it's intervention in the market by…
Q: Derive and discuss the three major fiscal policy multipliers
A: Assuming an open economy where output is exactly equal to the sum of consumption expenditure,…
Q: True or False and explain: Fiscal Policy is effective at reducing the duration of an economic…
A: Fiscal policy refers to the method of government spending and tax policies to control the economic…
Q: Explain the essence of fiscal policy and how it realized! Explain causes and consequences of budget…
A: Fiscal policy is the use of government revenue collection and expenditure to influence a nation's…
Q: lesae explain briefing what policy and implementation lags affect the potency of fiscal policy, and…
A: How fiscal policy works The use of taxation and government spending to impact the economy is…
Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…
A: 1) An expansionary fiscal policy will be better suited for the scenario of rise in natural rate of…
Q: Explain the instuments of Fiscal policy.
A: Monetary and fiscal policy are the 2 most important type of policies in the economy. Monetary policy…
Q: explain the impact of balanced budget on national debt
A: Primarily. lets clear on two basic concepts that will be used in the question under consideration:…
Q: xplain the five problems and criticisms that arise in the implementation of fiscal policy.
A: Fiscal policy is the policy that is adopted by the government to bring economic stability in the…
Q: Describe the supply-side effects of a fiscal stimulus and explain how a tax cut will influence…
A: The supply-side effects of fiscal-stimulus: Fiscal-stimulus can be given in the form of higher…
Q: model of an economy with the following equa Yd he fiscal policy multiplier with respect to incon
A: *Answer:
Q: ifference between keynesian and supply-side fiscal policies.
A: Fiscal policy is the strategy that is made by the government to change the money supply in the…
Q: xplain the supply-side effects of fiscal policy on employment and potential GDP
A: Employment increases when production activities increase in the economy because when producers…
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: What action could the TCMB take to reduce the crowding-out effect of an expansionary fiscal policy?
A: Expansionary fiscal policy involves increasing government spending or decreasing taxes, which…
Q: Explain how the two main tools of fiscal policy can be applied by a government in the…
A: "Government make use of fiscal policy in order to stabilize a country's economy. Government while…
Q: Suppose the economy is in a recession. In this case automatic stabilizers will
A: Automatic Stabilizers are defined as government policies which automatically adjust the tax rates…
Q: What are the Cost and then benefits of contractionary fiscal type in the economy
A: The policy that is used by the government during high phases of growth of the economy is being known…
Q: Assume MPC 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Round…
A: The measure that depicts a portion of an additional dollar being spent or consumed of income of a…
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: 10. Legislative lags associated with fiscal policy are due to all of the following, except:…
A: fiscal policy is the use of government revenue collection and expenditure to influence a country's…
Part B
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Step by step
Solved in 5 steps
- What is the Keynesian prescription for recession? For inflation?1) Identify key assumption underlying Keynesian and Classical approaches to macroeconomic analysis. In your answer indentify how Keynesian and CLassical economist differ regarding understandign about the business cycle and how the economy should best be managed ?1. Which of the following is not an assumption of the simple Keynesian model ? (a). We are in the short -run (b).Prices are constant (c).Output is demand -determine (d). Output is supply -determine (e). Aggregate output equals planned expenditure. 2. Which of the following is not one of the principal economic goals for the economy ? (a). Economic growth (b).Stable prizes (c). Strong national defense (d). Full employment (e). A strong cedi 3. Which is not a cause for business cycles considered by macroeconomists. (a). Greed (b) variations in optimism (c) shocks to money supply (d) shocks to technological ability 4. Which of the following question is of most interest for macroeconomics. (a). Why do foreigners immigrate to Ghana. (b).What is the appropriate stance of antitrust policy (c)Why is there inflation (d). What does the steel industry wants to tariffs 5. Which of the following statement is true ? (a). Final goods as produce in the same year as the related final good…
- 1. Why is the aggregate demand curve downward sloping? 2. What factors may cause the short run and the long run aggregate supply curves to shift? 3. What is the Classical view of economic management and how is this different from Keynesian's view? Detailed answer with relevant examples if it applies. Thank you15. Which of the following makes expansionary Keynesian policy unavailable? a) Crowding out effect b) Inflation c) transactions demand for money d) sovereign debt crisis e) All the above1.) The Keynesian AD-AS model describes what happens with price levels when aggregate demand increases. Could you find any evidence from the last ten-fifteen years that might support AD-AS model descriptions of demand-pull inflation, cost-push inflation, and recession? For example, you could find data on the GDP’s of any two countries from 2000 to 2017 to support your findings. 2.) In macroeconomics, the immediate short run is known as a length of time when both input prices and output prices are fixed. In the short-run, input prices are fixed but output prices are variable. In the long run, input prices and output prices can vary. What happens in the immediate short-run when AD falls from AD to AD2 to the price level and output? What happens in the short-run when AD falls from AD to AD2 to the price level and output? What will happen in the long-run?
- 10. Which of the following are reasons why the short-run Aggregate Supply curve shown in the right-hand diagrams may be vertical? a) The economy at this level of real GDP would be operating beyond the full-employmetn level. b) Inflationary expectations have set-in so, the owners of resources are acting on these inflationary expectations and insisting on higher resource prices in anticipation of future products price inflation. c) Short-run Aggregate Suply in the Classical model is always constant. d) All the above e) Only (a) and (b) are true. f) None of the above.In a Keynesian framework, using an AD/AS diagram, which of the following government policy choices offer a possible solution to recession? Which offer a possible solution to Inflation? A tax Increase on consumer income. A surge in military spending. A reduction in (axes for businesses that Increase investment. A major Increase in what the U.S. government spends on healthcare.In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers. A large Increase In the price of the homes people own. Rapid growth in the economy of a major trading partner. The development of a major new technology offers profitable opportunities for business. The Interest rate rises. The good imported from a major trading partner become much less expensive.
- Economists from all theoretical persuasions criticized the American Recovery and Reinvestment Act. The Stimulus Package was arguably a Keynesian measure so why would a Keynesian economist be critical of it? Why would neoclassical economists be critical?List three practical problems with the Keynesian perspective.1. Which of the following is not an assumption of the simple Keynesian ? (a).We are in the short run (b). Prices are constant (c).Output is demand -determine (d). Output is supply -determine (e). Aggregate output is equals planned expenditure 3. Equilibrium in the market for bank reserves determine. 4. The consumer prices index (CPS) baskets of goods typically consumed in period 2 goods .
