Classify each statement based on the type of fiscal policy to which it refers. Expansionary fiscal policy Supply-side fiscal policy Contractionary fiscal policy

Q: The $1200 and $600 stimulus checks that many Americans received over the last year is an example of…

A: Meaning of Economic Growth: The term economic growth refers to the growth towards the internal…

Q: If government policy makers were worried about the inflationary potential of the economy, which of…

A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…

Q: government budget shows a primary deficit of 8200 the revenue expenditure on interest payment is 100…

A: Literally in the exact word we can say that the fiscal deficit is known to be as the amount or the…

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

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: How will Expansionary Fiscal Policy affect the Federal Budget? A budget surplus will decrease the…

A: An expansionary fiscal policy is a policy that means there is more money supply in the economy.

Q: Discuss the difficulty in predicting the effects of discretionary fiscal policy.

A: Fiscal policy is the process through which a government modifies its spending and tax rates in order…

Q: discuss the economic implications of  Joe Biden’s fiscal stimulus for the US economy and the…

A: The economies around the globe are focused on their development and growth in various areas. The…

Q: Expansionary fiscal policy occurs when the government decreases spending or increases taxes to…

A: Fiscal policy is the tool used by government to control the economy.

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: Identify and explain the purposes, tools, and limitations of fiscal policy.

A: Fiscal policy refers to the measures adopted by the government, involving the revenue collection and…

Q: _____ are elements of fiscal policy that automatically change when income changes.   a. Budget…

A: Fiscal policy is one of the tools of the government to influence macroeconomic conditions such as…

Q: An expansionary fiscal policy: (Select All that Apply) Helpful Hint: There are 4 correct answers. O…

A: Fiscal policy is sometimes compared with monetary policy, which is determined by central bankers…

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

A: Expansionary monetary policy is used to boost up the economic growth. It aims to increase the…

Q: Council Economic Advisers (CEA)

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

Q: (Wall Street Journal) “Washington Wire” is a column that appears on the front page of…

A: A price-quantity pair in which the quantity asked equals the quantity delivered is called…

Q: Calculate Fiscal deficit if primary deficit is $3200 million and the interest payments is $2500…

A: Here we calculate the Fiscal Deficit by using the Primary Deficit and Interest , so the calculation…

Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…

A: Fiscal policy is used by governments that have an economic influence. Changes in taxation and…

Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…

A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…

Q: Explain the Expansionary and Contactionary Fiscal Policy with the help of diagram.

A: Fiscal policy is used by the central government of the country or finance ministry of the country to…

Q: Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be…

A: Contractionary fiscal policy:- When the government either slashes expenditure or hikes taxes, it is…

Q: Assume that the economy is facing a GDP gap. 1. Write a report explaining why that might have…

A: There are two types of GDP gaps i.e. rrecessionary output gap and the inflationary output gap. In…

Q: Discuss the challenges of predicting the effects of discretionary fiscal policy on aggregate…

A: fiscal policy refers to the policy of taxation and expenditures of government. Government makes…

Q: to 2002 c. 2002 to 2003

A: Contractionary fiscal policy is when the government either tends to raise taxes or cut spending.It…

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

A: Fiscal policy refers to changes or adjustments in the expenditure(spending) and/or the taxes so as…

Q: Explain how expansionary fiscal policy works in an economy

A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…

Q: List what specific, deliberate actions the federal government could take to enact expansionary…

A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…

Q: Clearly distinguish between expansionary and contractionary fiscal policy.

A: Introduction Fiscal Policy Fiscal policy is controlled by the central government of the country.…

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: Differentiate between the expansionary fiscal policy and contractionary fiscal policy with diagram…

A: Fiscal Policy: Fiscal policy is used to influence aggregate demand and maintain stability in the…

Q: Supply-side fiscal policies focus on improving the incentives to work, save, and invest.   Group of…

A: In the market, when the government wants to implement fiscal policy, it can either impose…

Q: Distinguish between discretionary and nondiscretionary fiscal policy. What is the difference? What…

A: SUMMARY- Discretionary fiscal policy alludes to the policy drives taken up by the public authority…

Q: Complete the following sentence. As it relates to fiscal policy, a budget deficit exists when:Choose…

A: A budget deficit occurs when a government spends more in a given year than it collects in revenues,…

Q: Giving examples, outline the reasons for using a discretionary fiscal policy

A: Fiscal policy: It refers to a policy that is used by the government. It is a policy used to tackle…

Q: Identify one fiscal policy action that could counter the increase in investments. Explain how this…

A: Fiscal policies are actions taken by the government to stabilize the economy. The policies include…

Q: Explains in detail fiscal policy, its role, and its effects on short-term and long-term economic…

A: Fiscal Policy: The Fiscal Policy is the revenue and expenditure policy of the government to…

Q: Gokhale and Smetters (2003) found that the long-run fiscal imbalance in the U.S. government budget…

A: Gokhale and smettersbth economist of America researched on fiscal imbalance of America.In 2003,they…

Q: Analyse the various policy measures that a government might have to undertake to deal with and…

A: A fiscal deficit occurs when government spending exceeds government receipts. An uncontrolled fiscal…

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.