Economist Arthur lagger famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?

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

A: Fiscal policy refers to the type of the economic policy in which the government of a country tries…

Q: What is the tax policy?

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Why is a $100 billion increase in government spending on goods and services more expansionary than a…

A: According to the aggregate expenditure model Total income (Y) = Consumption (c +b(Y-Taxes) +…

Q: explain the purposes, tools, and limitations of fiscal policy?

A: The economies around the world tend to work with the motive and objective of increasing their…

Q: Most economists have reached the following conclusion about supply-side economics. a. Supply-side…

A: The answer is - c. Supply-side tax cuts are likely to widen income inequality.

Q: Why is crowding out an important issue in the debate over the use of fiscal policy?

A: Crowding out effect is an economic situation where interest rates are increased. This ends up  in…

Q: Briefly explain how an expansionary fiscal policy works.

A: In an economy, fiscal policy refers to the action of the government when it tries to influence the…

Q: How does fiscal policy affect the equilibrium income in an economy

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

Q: What is the meaning and definitions of fiscal policy?

A: Fiscal policy is implemented by the government of a country. Money supply refers to the total volume…

Q: Why is the tax multiplier smaller than the government spending multiplier?

A: Spending & taxation are the two main instruments of fiscal policy. The government can either…

Q: Why do you think that expansionary fiscal policy can fail during a recession?

A: Recession is a situation in the economy, when there is general decline in the economic activity. For…

Q: A constitutional amendment has been proposed that would require Congress to balance the budget each…

A: Balanced budget is when the government expenditures is equal to its revenue.It is not possible to…

Q: can Social Security and Medicare be fiscal time bombs

A: Social security is an initiative by Federal government which provides sources of income to people…

Q: Who Controls Fiscal Policy?

A: option 2 is right answer The president and Congress Federal Reseve no role in control  fiscal policy

Q: What might be the consequences If congress were to cut individual income tax rates in half ?

A: Tax cut proponents argue that lowering taxes boosts spending, which helps the economy. Those who…

Q: What are the reasons of fiscal policy not being effective in an economy according to classical…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: How much fiscal stimulus or restraint occurred between

A: Fiscal stimulus refers to the amount by which the structural deficit in a nation rises. It can also…

Q: What is the Laffer curve. Graphically show how to increase the tax revenue.

A: The economies around the world tend to operate with the motive of increasing their growth, and…

Q: What are the positive and negative impacts of fiscal policy on businesses within an economy?

A: Fiscal policy refers to the policies of expenditures and taxes of the government of a country. It…

Q: The two largest areas of federal spending which impact the U.S. budget are

A: In total federal spending, social security contributes to highest with 33 % and then medicare and…

Q: Describe some fiscal policies that governments are presently using to counter the impact of…

A: The fiscal policy is used by the government or the finance ministry of the country to regulate the…

Q: Who is in charge of fiscal policies, and how do their different multipliers work?

A: The fiscal policy is the use of the government budget to affect an economy. when the government…

Q: An example of a expansionary fiscal policy is ___? need only one example fast

A: Accordingly the expansionary fiscal policy is merely known as a decrease in the tax revenue and the…

Q: What do you understand by the term Fiscal Policy?

A: Fiscal policy is a way through which the US government adjusts its Expenses and tax rate depend on…

Q: Does tax cuts reduce tax revenue?

A: Government tax revenue: - it is the sum total of the income government received through taxation.

Q: economy with an income tax of 10%, what is the budget balance of thegovernment? economics

A: Autonomus utilization is the utilization consumption that happens when pay levels are zero. Such…

Q: Which of the following can tax cuts influence? a. aggregate demand and aggregate supply b.…

A: Answer - Need to find - Which of the following can tax cuts influence Evaluating the options:- a.…

Q: Discuss how governments can use fiscal policy to address TWO costs of unemployment.

A: Answer: The TWO costs of unemployment are given below: (1). Loss of output or goods and services:…

Q: What are the potential issues with fiscal policy?

A: The use of govt spending and taxation policies to impact economic circumstances, particularly…

Q: Government spending in the u.s federal budget that congress can adjust as it wishes is called ?

A: Major portion of the federal budget goes towards mandatory programs of social security, medicare and…

Q: Discuss whether supply-side policies have been successful in improving the performance of an economy…

A: Supply- side policy:- These policies are attempts of government in order to enhance the productivity…

Q: Most economists have reached the following conclusion about supply-side economics. a. None of…

A: Supply means amount of goods and services available for consumers.

Q: Define fiscal policy and explain the role of income taxes and government spending as fiscal policy…

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…

Q: What are the limits of fiscal policy?

A: Fiscal policy:- It is the government mechanism to either control the level of economic activities.…