Explain how the fiscal policy tools used by the federal government should work in terms of fighting a recession such as that brought about by the COVID-19 pandemic. Then explain why fiscal policy may have proven less effective in the face of this pandemic than in previous recessions.

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: 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: 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 role of fiscal policy in the 20th century during the so-called US “golden age” period,…

A: The AD-AS model explains the Keynesian model and its effect on the price level and the quantity of…

Q: Discuss the various stimulus programs (Fiscal Policy) implemented by the U.S. government during…

A: During Covid – 19 crisis, various programs are launched by the US government. Fiscal policy has…

Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

A: Expansionary monetary policy is used to boost up the economic growth. It aims to increase the…

Q: As we emerge from the pandemic, your friends are concerned with the rising prices they're…

A: Introduction  Fiscal policy has known as budgetary instrument of government policy. It influences…

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: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…

A: Fiscal policy is used by governments that have an economic influence. Changes in taxation and…

Q: Assume that in a hypothetical country, coal mining is a significant industry, hiring a high…

A: During a downturn, expansionary fiscal policy is employed to push the country. It improves economic…

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: Right now many economies in the world are experiencing a downturn due to the Corona Virus. a) What…

A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only the…

Q: |An economy is in a below​ full-employment equilibrium.   What is the effect on aggregate demand and…

A: The full-employment level is the situation when an economy is able to reach its potential output…

Q: Do you notice any crowding out effect when government implemented aggressive expansionary fiscal…

A: Crowding out occurs when rising interest rates cause a decrease in private investment spending,…

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: 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: Explain how time lags present an additional problem in fiscal policy.

A: Fiscal policy is policy of expenditure and taxes. Fiscal policy is operated by the government. Lags…

Q: Discuss the challenges of predicting the effects of discretionary fiscal policy on aggregate…

A: fiscal policy refers to the policy of taxation and expenditures of government. Government makes…

Q: Refer to Figure 10-1. If the economy is below full-employment real GDP, what will the new long-run…

A: The measure that epicts the final value of goods and services being produced in the economy during…

Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…

A: The answer is - raising the quantity of money in circulation

Q: In which situation would it make the most sense to send stimulus checks as an exapansionary fiscal…

A: Answer: Correct option: b (Forced shut-downs of the economy due to a health pandemic lead to a…

Q: How did John Maynard Keynes economic theory influence the 20th Century fiscal policy?

A: Fiscal policy: - it is a tool of the government of a country in which the government adjusts its…

Q: Create a graph with an aggregate demand curve and an aggregate supply curve in the short-run. Use…

A: An Aggregate Demand-Aggregate Supply model is a macroeconomic model that represents the incumbent…

Q: On this graph show and explain the impact of the fiscal packages policy implemented in Trinidad and…

A: Here it can be seen in the graph that the Money demand has a left side shift which shows that the…

Q: Tools ofmonetary policy and fiscal policy?

A: Monetary policy is the macroeconomic policy used by central bank in order to affect money supply and…

Q: What is Fiscal Administration as you have understood in this module.

A: Public Fiscal Administration, by and large, alludes to the cycle/is associated with the income age,…

Q: As an economist and based on the impact of COVID-19, identify and justify economic and fiscal policy…

A: The government has made a decisive move to contain and relieve the spread of the infection and to…

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

A: The CEA was settled under the Employment Act,1946. It was established to provide the president with…

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: What is the impact of using Fiscal policy tools on an economy - more specifically aggregate demand…

A: The aggregate demand is the aggregate demand of all the goods and services produced in the economy.…

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

A: Fiscal policy is tools available to the central government to mitigate the economic consequence by…

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: The recent economic recession was brought about by the Covid-19 pandemic. The pandemic brought along…

A: The recent economic recession which was brought about by the Covid-19 pandemic has been responsible…

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: What do you understand from the sustainability problem of the fiscal stimulus packages implemented…

A: When the economy is facing a recession, the government can stimulate the economy by using…

Q: Identify one fiscal policy action that could counter the increase in investments. Explain how this…

A: Fiscal policies are actions taken by the government to stabilize the economy. The policies include…

Q: Explains in detail fiscal policy, its role, and its effects on short-term and long-term economic…

A: Fiscal Policy: The Fiscal Policy is the revenue and expenditure policy of the government to…

Q: Give a numerical example and illustrate the difference between complete crowding out, incomplete…

A: Crowding out is a situation in which an increase in government spending or investment causes a drop…

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: The government of Australia has embarked on various policies in order to reduce the severity of…

A: The Covid-19 Pandemic affected negatively to the world economy and the overall health of the…