Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.

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: Is expansionary fiscal policy more attractive to politicians who believe in larger government or to…

A: The fiscal policy is the policy of the government regarding the taxation and the government…

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: 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: What are the implications of the current fiscal stimulus and low interest on the future of our…

A: A stimulus package is defined as a coordinated measure by the government to lift the economy out of…

Q: What would happen if contractionary fiscal policy were implemented during an economic boom but,due…

A: The fiscal policy is a policy of the government which includes instruments namely taxes, government…

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: 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: Discuss one likely affect of fiscal policy financed via the accumulation of additional government…

A: Fiscal policy is related to government spending and use of taxes as well as subsidies for the…

Q: Discuss the government’s use of discretionary fiscal policy in controlling economic fluctuations.

A: Fiscal policy refers to the government policy of expenditure and taxes. The changes in the tax and…

Q: What is the main advantage of automatic stabilizers over discretionary fiscal policy?

A: Fiscal policy(FP) tools can be implemented in two types that are automatic stabilizers and…

Q: Describe the shortcomings of Fiscal Policy. Be as thorough as possible.

A: Fiscal policy is the one where government changes its spending and tax policies in order to achieve…

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: Which fiscal policy would make a budget surplus smaller or a budget deficit larger? lower government…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Explain the theory that crowding out can weaken or nullify the effect of expansionary fiscal policy…

A: Expansionary fiscal policy is used to shift the aggregate demand curve right. This is usually done…

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: How does the Expansionary and Contractionary Fiscal Policy affect the Inflation, GDP, Economic…

A: The government uses fiscal policy to increase or decrease the aggregate output. It can increase or…

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: 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: Discuss the two (2) main tools that a government can use to implement fiscal policy.

A: The term 'fiscal' relates to the government's budget and signifies 'budget.' Fiscal policy is the…

Q: Why is identifying potential opportunities, and managing within predictable limits for fiscal policy…

A: Fiscal policy is an important tool for dealing with the economy on account of its capacity to…

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: 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: 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 expansionary and discretionary fiscal policy (300 words)

A: Fiscal policies define as the government's policy which is used to control the money supply in the…

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

A: Fiscal policy is tools available to government to counter the economic imbalances, using an…

Q: How would you explain Discretionary fiscal policy:

A: Fiscal Policy- It is the policy adopted by the government to bring economic stability by the help of…

Q: Explain the difference between “active” discretionary fiscal policy advocated by mainstream…

A: During recessions, active discretionary fiscal policy entails the use of deficit spending, that is,…

Q: Which of the following is a limitation to fiscal policies? 1 The zero bound interest rate. The…

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

Q: Which of the following is an expansionary fiscal policy? increase in taxes only both increase in…

A: Fiscal policy is the term used to describe how the government uses spending and taxation to affect…

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: Assume the economy has entered a recession. Identify two fiscal policy actions that could be used to…

A: The recession would result in the fall in the output and the fall in the GDP . The recession would…

Q: Explain how governments need to recognise the impact of several time lags as a problem in fiscal…

A: Changes the government makes to spending or taxing in an effort to affect the state of the economy…

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…