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Explain the expansionary fiscal policy in the short run and long run (ignoring exchange rate and capital flows).
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- Explain the contractionary fiscal policy in the short run and long run (ignoring exchange rate and capital flows).An increase in the budget deficit is the result of: A) Expansionary monetary policy; B) Contractionary monetary policy; C) Expansionary fiscal policy; D) Contractionary fiscal policy. Company tax is a: (a) Progressive, direct tax; (b) Progressive, indirect tax; (c) Proportional direct tax; (d) Regressive indirect tax. In the base year, a country produced 50 units of output at a price of R6,00 each for a nominal GDP of R300. This year it produces 60 units of output at a price of R8,00 each. What is the percentage change in real GDP since the base year? (a) 5%; (b) 10%; (c) 20%; (d) 15%.Conventional ways to reduce the deficit and the related problems. Unconventional ways to reduce the deficit and the related problems. Please explain these as soon as possible please
- Of the four major economies , US, China, Japan, and Germany, which ones have also been running deficit of the kind in (a) and are now in national debt of the kind in (a)?What is fiscal deficit and what are two reasons why this economic statistic is so closely monitored in small fixed exchange rate economies?Twin deficits refer to the combination of government budget deficit and trade deficit. The relationship between the 2 types of deficit is If the government budget deficit decreases, then the trade deficit would rise. An increase in the government budget deficit can lead to a greater trade deficit, but not always. During a recession, both deficits are likely to fall.
- Reasons to be concerned with printing money to finance the deficit. Reasons to be concerned with borrowing to finance the deficit. Please explain these questions as soon as possible pleaseWhich of the following is not true of deficits? Supply-side policies contribute to budget deficits by cutting taxes. Demand-side policies contribute to budget deficits by increasing government spending. Deficits in any budget year are repaid in the next year's budget. Deficits result in increased debt.To eliminate the deficit (and halt the growth of the net public debt), a politician suggests that “we should tax the rich.” The politician makes a simple arithmetic calculation in which he applies a higher tax rate to the total income reported by “the rich” in a previous year. He says that the government could thereby solve the deficit problem by taxing “the rich.” What is the major fallacy in such a claim?
- Consider the Mundell-Fleming model with fixed exchange rates. Explain graphically the effect of expansionary fiscal policy on output?The recent Trump tax cuts are projected to increase the national debt by $24.5 trillion over the next 20 years. This will be financed through future taxes. Americans' future standard of living will increase if Question 14 options: the current account goes into surplus the government increases expenditures net exports rise substantially the tax cuts produce a large increase in current and future GDPThe us government has shutdown a number of times in recent history. Explain how a government shutdown will affect the variables inthe national investment and savings identity. Could the shut down affect the governement budge deficit?
