Explain how fiscal policy can be implemented if an economy is in the downswing of a business cycle.

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: How could the government deal with the crowding out effect generated from applying the expansionary…

A: Crowding out effect occurs when the increase in spendings or investment by the government crowds out…

Q: If the objective of fiscal policy is to stabilize (achieve full-employment (potential) GDP and…

A: A balanced budget is a circumstance in monetary planning or the budgeting technique where total…

Q: Explain and show the consequence for fiscal policy if the marginal propensity to consume is a…

A: Fiscal policies are the public authority made approaches made to control, fortify and support the…

Q: Explain the concept of Fiscal Policy

A: Definition of Fiscal Policy: Fiscal policy is a policy of government to control the economy through…

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: Describe the difficulties that can arise in implementing fiscal policy.??

A: Fiscal policy is known to be the policy in which the government uses three instruments which include…

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: How could fiscal policy alleviate the problem? What specific policy changes would be needed?

A: Everything involving public funding or taxes is referred to as fiscal. Fiscal policy refers to how…

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: 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: Define what is 'automatic stabiliser' in fiscal policy, and provide 2 examples

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

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: 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: 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: Classify each statement based on the type of fiscal policy to which it refers. Expansionary fiscal…

A: The fiscal policy action that is used by the government to increase the aggregate demand is known as…

Q: Propose the Fiscal Policy needed to fix this economy.

A: A) Cost push inflation (Graph Type) In graph we can there is an increment in the price level because…

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: 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: 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: and

A: Supply-side economics is theory postulating that tax cuts for the wealthy result in increased…

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: Which kind of economic fiscal policy measures do you recommend at the current economic situation…

A: Stagflation is defined as a period of poor economic development and relatively high unemployment—or…

Q: How relevant is the multiplier concept to the implementation of expansionary and contractionary…

A: Spending multiplier: - it is a fraction that shows the magnitude of the change in national income…

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: 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: Describe how expansionary fiscal policy can fail during a recession.

A: Fiscal policy refers to the policy taken by the government to influence the economy of a nation. The…

Q: Strengthts and weaknesses of fiscal policies.

A: Fiscal policy refers to the policy by government to control the aggregate demand or stabilise the…

Q: Identify the effects of fiscal policy on the economy

A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…

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: Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy,…

A: Contractionary fiscal policy: Contractionary fiscal policy refers that when the government decreases…

Q: What action could the TCMB take to reduce the crowding-out effect of an expansionary fiscal policy?

A: Expansionary fiscal policy involves increasing government spending or decreasing taxes, which…

Q: Explain how the two main tools of fiscal policy can be applied by a government in the…

A: "Government make use of fiscal policy in order to stabilize a country's economy. Government while…

Q: Fiscal Policy) Was fiscal policy effective when the U.S. economy was experiencing stagflation during…

A: Fiscal policy is the policy used by government to stabilize the economy in the business cycle. 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: 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: 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…