Describe fiscal policy. How can it affect the money supply, interest rates, and the expansion and contraction of the economy?    What are the problems and pitfalls associated with fiscal policy? In what ways does it directly affect us?

Q: Who sets fiscal policy?   a. the U.S. Treasury and the U.S. Congress   b. Congress and the…

A: The fiscal policy is the way by which a government adjusts its spending levels and tax rates to…

Q: Give a brief definition of fiscal policy?  What are its economic goals?    Fiscal policy is the use…

A: Answer: Definition of fiscal policy: Fiscal policy is a policy of government wherein the government…

Q: What is an expansionary gap? What fiscal policy might close that gap?

A: Answer: Introduction: Expansionary gap: when the actual output level exceeds the potential output…

Q: What are problems that governments may encounter in enacting and applying fiscal policy? Explain the…

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

Q: Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How…

A: Fiscal Policy:Fiscal policy is the tool of government through which it maintains the economy of a…

Q: What is the role of the Council Economic Advisers (CEA) as it relates to the effectiveness of the…

A: The Council Economic Advisor or CEA created as in the Employment act of 1946, assists and advice the…

Q: Council Economic Advisers (CEA)

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

Q: What is expansionary fiscal policy? What is contractionary fiscal policy? Does expansionary fiscal…

A: In Keynesian macroeconomic theory, aggregate demand plays a very major role in stabilizing the…

Q: How will a contractionary fiscal policy affect a budget deficit? A.) Debts will…

A: Budget deficit refers to the amount of expenditure of a government that surpasses/exceeds the total…

Q: What are the three fiscal policy tools and how would each be used to counter a contractionary gap?

A: Fiscal policy tools are the revenue and expenditure tools of the government undertaken to accomplish…

Q: What are some fiscal policy measures that can be enacted by the legislative and executive branches…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: What is the importance of fiscal policy during times of economic recession?

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

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: What's the difference between the debt and a deficit? Expansionary fiscal policy involves increasing…

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

Q: Discuss Expansionary Fiscal Policy. Who is responsible for implementing fiscal policy? What may be…

A: Policies are created by the government in order to keep the economy on track and ensure economic…

Q: when is the most appropriate time economically speaking for the federal budget be in a deficit?

A: A budget deficit is a situation when government spending exceeds the government's total income. A…

Q: Summarize MMT in one sentence.

A: MMT means Modern monetary or money theory.

Q: Cite the five major demand-side components of GDP. Then, identify the major elements affected by…

A: Gross domestic product of a country is the market value of all final commodities and services that…

Q: Which is considered expansionary fiscal policy? a)a tax increase for wealthy individuals b)an…

A: Fiscal Policy is  the use of tax policy and the government expenditure that can influence the…

Q: when can we say that fiscal policy succeeded and where/ when can we say that fiscal policy has…

A: Fiscal policy refers to the actions used by governments to stabilize the economy, particularly…

Q: What is fiscal policy and what is the crowding out effect of expansionary fiscal policy?

A: Government use various policy instruments in the economy to properly balance and maintain it and…

Q: ist the 3 major economic goals of fiscal policy.   Who is responsible for fiscal policy?

A: Since you have multiple questions, I would be answering the first two. If you want any specific…

Q: What specific fiscal policy tools would you use to stimulate aggregate demand and how? also include…

A: Fiscal policy tools use to stimulate aggregate demand:To stimulate the aggregate demand, the fiscal…

Q: Some Economists argue that Fiscal policy have no effects in the long run on employment and aggregate…

A: There are various responsibilities of government and central bank towards the economy. The overall…

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: Using examples from 2008-currently, explain fiscal policy. In your answer be sure to include what…

A: Main objective of any economy is stabilisation, economic growth, employment generation and poverty…

Q: What is classes as an expansionary fiscal policy?

A: Fiscal policy is the government-imposed policy used to change economic conditions like demand,…

Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…

A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…

Q: By using graphs, show and explain the effects of an expansionary fiscal policy on the goods market…

A: Expansionary fiscal policy is defined as how the government initiates with spending more and even…

Q: Explain the relationship between the effectiveness of monetary policy and the interest elasticity of…

A: Interest elasticity of money demand shows the change in Money demanded due to change in interest…

Q: Fiscal policy involves increases or decreases in Multiple Choice O interest rates. the money supply.…

A: Fiscal policy basically refers to the use of government spending and taxation to influence the…

Q: What kind of fiscal policy will you use to fight against inflation. Explain it briefly.

A: Fiscal policy refers to changes in the federal government purchases and taxes, which are intended to…

Q: Compare two fiscal policies: a tax cut on income or an increase in government spending on roads and…

A: FP is a tool of government to stimulate the economy. It includes government expenditure and taxes,…

Q: Outline the supply-side view of fiscal policy. How does this view differ from the various…

A: In the Supply- side view, the output of the economy is stimulated to increase by increasing the…

Q: Expansionary fiscal policy increases the government budget deficit. True, False, or Uncertain?…

A: Fiscal policies are the policies that are managed by the government with the aim of influencing…

Q: During 2008, the United States began to experience what has become known as the Financial Crisis.…

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

Q: Describe the role of the budget in fiscal policy

A: Fiscal policy is the use of public funds and tax assessments to affect the economy. Governments…

Q: Explain how the implementation of this policy is related to the simple spending multiplier. Explain…

A: Fiscal policy is a branch of monetary policy where the government try to manage the or adjust the…