Expresses in detail the effects of expansionary and contractionary fiscal policy on income and the price level

Q: In case of DEFLATION, mention that which particular type of fiscal policy will be used and why and…

A: Deflation occurs when the price level falls in the economy. It is usually when people prefer to hold…

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

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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: The graph below depicts an economy where an increase in aggregate demand has caused inflation.…

A: The change in the aggregate demand brings about the change in the output and price level. The change…

Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: _____ are elements of fiscal policy that automatically change when income changes.   a. Budget…

A: Fiscal policy is one of the tools of the government to influence macroeconomic conditions such as…

Q: Explain each of these statements supported by reasonable reasoning:   1. Zero lag is among the…

A: Automatic stabilisers are ongoing government policies that adjust tax rates and transfer payments…

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: 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: Identify a change in fiscal policy that will shift the composition of output toward investment.…

A: When a contractionary fiscal policy is adopted, it reduces government spending and raises taxes,…

Q: Calculate Fiscal deficit if primary deficit is $3200 million and the interest payments is $2500…

A: Here we calculate the Fiscal Deficit by using the Primary Deficit and Interest , so the calculation…

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: 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 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: 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: 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: 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: Why the aggregate supply (AS) curve is relatively flat within the low ranges of aggregate output and…

A: Aggregate supply refers to the total value of goods and services available for purchase at a…

Q: Cite the five major demand-side components of GDP. Then, identify the major elements affected by…

A: Gross domestic product of a country is the market value of all final commodities and services that…

Q: List what specific, deliberate actions the federal government could take to enact expansionary…

A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…

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: a. A recession. b. A stock market collapse that hurts consumer and business confidence. c.…

A: * ANSWER :-  (a)

Q: Describe the roles of government bodies that determine fiscal policy. Explain fiscal policies’…

A: The role of government bodies that determine fiscal policy are as follows: The government fiscal…

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: What is the difference between expansionary and contractionary fiscal policy and what effects does…

A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…

Q: What is the difference between debt and deficit? Explain why there is no time lag for automatic…

A: Deficit is the difference b/w the amount that is received and what is spent by the government of a…

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: 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: 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: Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one…

A: Headline fiscal deficit Vs the primary fiscal deficit 1. The primary deficit is the amount of…

Q: Identify the type of Fiscal Policy The government reduces the wages of its employees while raising…

A: In an economy, governement enter the market using its policies, which are known as fiscal policies.…

Q: What issue or problem in the economy would be fixed with expansionary fiscal policy? Contractionary…

A: Expansionary-Fiscal policies are targeted towards increasing the consumption in the…

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: What are the Cost and then benefits of contractionary fiscal type in the economy

A: The policy that is used by the government during high phases of growth of the economy is being known…

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: Calculate the primary deficit if Fiscal deficit is $2000 million and the interest payments is $440…

A: The given information is :- Fiscal deficit of the government = $2000 million Interest payments =…

Q: Describe the role of the budget in fiscal policy

A: Fiscal policy is the use of public funds and tax assessments to affect the economy. Governments…