compare monetary and fiscal policy in classical and keynesian model. Be precise

Q: When the economy is going through recessionary gap, which of the below policy is more likely to be…

A: Aggregate Demand curve (AD) is the downward sloping curve which shows an inverse relationship…

Q: Fiscal policy nowadays are focused on eliminating GDP gap  True  False

A: This statement is true.

Q: Bonus 1) Refer to Figure 16-4. In the graph above, supp initially at point A. The movement of the…

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

Q: Discussion 4 Discuss the "FISCAL POLICY: A KEYNESIAN PERSPECTIVE" was John Maynard Keynes Right?…

A: According to keynes,fiscal policy was very important for government.It needs to be initiated…

Q: Determine how each of the following monetary or fiscal policy would shift the aggregate demand…

A: a. Assuming the economy is currently producing above the full employment output, the government…

Q: SRAS PL2 PL AD2 AD Y,Y2 REAL GDP The Aggregate Demand Model shows an increase in Aggregate Demand or…

A: The given figure shows the increase in aggregate demand. Prices and output are increased.

Q: Q)If the US economy is in the following situation in 2022, what fiscal policies do you recommend…

A: Fiscal policy basically refers to the process through which a government modifies its expenditure…

Q: a. Based on the macro workhorse model, explain the 'journey' (mechanism) how an initial…

A: The fiscal policy is decided by the government of the country. It means taxes or government…

Q: Which one of the Macroeconomic policy relating to government spending and borrowing? O a. a. Fiscal…

A: The economies around the world tend to focus on their growth, and development, where the policy…

Q: ompare fiscal and monetary policy in order the generate macroeconomic stability.(use graphs)

A: The IS curve shows the inverse relationship between interest rate and output. The IS curve is…

Q: ontrast the effectiveness of fiscal policy in the BKM and AD-AS models.

A: The aggregate demand curve shows the inverse relationship between interest rate and the total…

Q: If the economy is in an expansionary mode just coming out of a recession, in regards to aggregate…

A: If the economy is in expansionary mode, then the government spendings would have been high or the…

Q: Does the effect of Monetary Policy can be seen much quicker than the effect of Fiscal Policy? Is…

A: The two most widely used instruments for influencing a country's economic activity are monetary…

Q: Fiscal policy can be classified into which two groups? A. Keynesian and classical B. discretionary &…

A: Fiscal policy refers to the government action to influence the market by making changes in taxation…

Q: Fiscal policy is the use of government tax and expenditure policy to influence the economy O True O…

A: Fiscal policy is used by government to influence aggregate demand and real GDP in the economy.

Q: please answer the following question: 1. Suppose an economy is slowing and more and more people…

A: "In an economy which is slowing down, the nation's government make use of fiscal policy to stimulate…

Q: The Government has a $0.8 Trillion Growth target. What fiscal policy should they implement if MPS =…

A: To stimulate growth, government uses expansionary fiscal policy, by increasing spending (G) or…

Q: If the government were to increase income taxes, how would that affect output (RGDP) and the price…

A: Similarly, contractionary fiscal policy,  dampens the output level in the short run. It shifts the…

Q: n the AS/AD model of the economy, fiscal policy aims to shift which curve?

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

Q: Uganda has an unstable macroeconomic situation and the government has decided to increase its…

A: Hi! thanks for the question but as per the guidelines, we can answer up to three sub-parts at one…

Q: Fiscal Policy cannot stabilize the Economy if there is High Unemployment and High Inflation…

A: Contractionary policy will decrease aggregate demand and shift it to the left. This decreases real…

Q: Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

Q: f an increase in government spending is accompanied by a reduction in spending by firms and…

A: The GDP or the gross domestic product is defined as the value of all final goods and services newly…

Q: What is Ricardian Model? What are the assumptions of Ricardian Model?

A: David Recardo gave model of international trade which is based on comparative advantage of the…

Q: Classical economists believed in raising the budget deficit to cure inflation. O True O False

A: The statement is false

Q: SRAS PL2 PL AD, AD Y, Y2 REAL GDP he Aggregate Demand Model shows an increase in ggregate Demand or…

A: In the given model Aggregate Demand is increasing. In an Expansionary Fiscal Policy, AD increases…

Q: (a) You are the economic adviser of Keyneslanding, the president calls you into her office and says…

A: C= 100 + 0.75 Yd G= 100 T= 100 Y = 900 T'=200 G'=200

Q: Fiscal policy is when changes are made toandto accomplish macroeconomic goals. Select an answer and…

A: Fiscal policy: These are the policy measures that are being introduced by the government of a…

Q: Which answer choice represents a fiscal policy rather than a monetary policy? A lowering the money…

A: Option C is a Fiscal Policy measure. Rest all three are Monetary policy measures. Monetary policy…

Q: Through utilizing fiscal policy, i.e. varying and/or governments achieve goals for output and…

A: The measure that depicts an increase in the production of services and goods during a given time…

Q: Suppose the government of a hypothetical economy decides to pursue a restrictive fiscal policy by…

A: Fiscal policy involves using tolls of government spending, taxes to influence economic decisions. It…

Q: Suppose in the country of Miltonia, Ricardian equivalence is 100% true. A- If Miltonian tax rates…

A: One of the most commonly used theories of Professor David Ricardo is the concept of comparative…

Q: Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to…

A: To revive any economy from the brink of recession there can two types of policies:- Expansionary…

Q: nternational Macroeconomics Y = C+I+G, where C=30+0.5*Y, I=100-10*r M=500-10*r+0.1*Y (Y and r are…

A: The fiscal multiplier is a Keynesian concept first presented by John Maynard Keynes's student…

Q: 01. Which ff the following reasons why fine-tuning the economy is not likely to be successful, is…

A: In an economy, there are different types of economic lags that may arise when government tries to…

Q: The U.S. is in a recession due to decreased Aggregate Demand in the economy. Should the government…

A: When there is a financial crisis in the economy or a rise in interest rates, fall in the prices of…

Q: Show effect of expansionary fiscal policy in the short run and medium run. AS AD model using ISLM…

A: The aggregate demand is the downward sloping curve which sows the aggregate demand for all the goods…

Q: Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: 18- tax cuts directed at higher income individuals will do more to stimulate the economy than those…

A: Tax refers to the compulsory charges levied by the government on its citizen and the citizen. The…

Q: Ricardian equivalence: Suppose that the government fears the economy mightbe heading into a…

A: Ricardian equivalence: - it is the theory given by David Ricardo which states that the consumers…

Q: Fiscal and Monetary Policy Assignment When the economy gets into serious problems, the government…

A: Answer D. Monetary policy refers to central bank actions aimed at influencing the amount of money…

Q: If inflation becomes too high, the government can use fiscal policy to slow the economy down some…

A: There are numerous techniques used to control inflation; some work well, while others might have…

Q: Fiscal policCy is purposet movements in designed to direct an economy.

A: Fiscal policy is a policy that the government uses to influence the economy. It aims at certain…

Q: Consider the following economy C=1000+0.4(Y-T) |=500 T=400 G=300 The current administration wants to…

A: we have C=1000+0.4(Y-T) I=500 T=400 G=300 so, equilibrium level of income =…

Q: Why did some governments feel that they had to introduce “austerity” fiscal policies soon after the…

A: A Fiscal Policy is an instrument of the government and reefers to the use of government spending and…

Q: Hello, I would like help on this assignment. Thank you. Fiscal Policy Assume the Economy has an…

A: (1)In economics, the term inflationary gap is a kind of situation where there exists a positive…