f the government were to implement a fiscal policy during a case of recession, all of these proposal are in line with the goal of fighting recession EXCEPT
Q: 1. If NX=0, then savings must be equal to invesment Select one: True False
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Q: Another part of the initial fiscal response to the Covid-19 recession were checks sent to every ad…
A: Another part of the initial fiscal response to the Covid-19 recession were checks sent to every…
Q: In the simple two period model of Chapter 9, we demonstrated lian equivalence. In your own word,…
A: *Answer: Answers Ricardian equivalence Theory- This theory says that finacing government…
Q: Question 16 How strongly should demographics influence the federal budget planning process? not…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 70 460 480 500 520 540 560 580 600 Real GDP a. If potential GDP (LAS) IS $580, and the economy is…
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Q: 3. The balanced budget multiplier For both political and macroeconomic reasons, governments are…
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Q: Explain how the fiscal policy tools used by the federal government should work in terms of fighting…
A: There are two tools of fiscal policy of any country. First is expenditure and second is taxes.…
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A: Economy is said to be at the full employment level when all the factors of production are…
Q: Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to…
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Q: Willam H. Branson" of "Macroeconomic Theory and policy" states that the "Fiscalist Model is an…
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A: Effects of a shock involving a decrease in money supply can be well explained through the use IS-LM…
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A: When the economy moves into an expansion, actual GDP exceeds potential GDP.
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A: Since there are multiple questions posted, we will answer only to the first one.
Q: Assume the government makes no fiscal policy changes when the economy experiences a downturn. Which…
A: In the mentioned question we have been asked what would be expected when the economy is turndown.
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Q: 4. Why are fiscal policy multipliers smaller in magnitude in the variable price-fixed wage version…
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Q: 07. What factors make an expansionary "stimulus" fiscal policy effective? a) A government…
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Q: 10.We discussed four problems (Problems of Timing, Political Consideration, Offsetting State and…
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Q: 07. What factors make an expansionary "stimulus" fiscal policy effective? One answer a) A…
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Q: Q.1.5 Which one of the following statements regarding fiscal policy and the budget is correct?(a)…
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Q: Suppose that there are no crowding-out effects and the MPC is 0.8. By how much must the government…
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If the government were to implement a fiscal policy during a case of recession, all of these proposal are in line with the goal of fighting recession EXCEPT
lowering income tax |
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increasing government spending and lowering income tax |
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increasing both government spending and income tax |
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increasing government spending |
When there is a problem of a delay in terms of implementation of the fiscal policy, that would be categorized as _____.
execution lag |
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information lag |
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decision lag |
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- Q.1.5 Which one of the following statements regarding fiscal policy and the budget is correct?(a) When the government plans to stimulate economic activity, it can increase spending or reduce taxes;(b) Revenue from tax is always greater than government spending in SouthAfrica;(c) Demand management only refers to fiscal policy;(d) A contractionary fiscal policy should be implemented to combatunemployment.19. Gross investment is the total amount spent on purchases of new capital and on replacing depreciated capital. True or false 21. Fiscal policy has important effects on the level of employment, nominal GDP and on aggregate supply, known as secondary supply effects. True or false 23. An increase in government spending is an expansionary fiscal policy. True or falseDiscuss the fiscal policy measures adopted by the government in the last two years. Evaluate the expected effects of these measures on aggregate demand and supply, as well as their impact on the major macroeconomic goals of steady GDP growth, price stability, and full employment. Determine whether these measures are expansionary or contractionary and consider their implications for the budget deficit and national debt.
- 2022 budget: China increases public spending to stabilize economy. China plans to expand public expenditure budget by 8.4 percent in 2022 compared with last year, totaling 26.71 trillion yuan ($4.23 trillion), according to a draft 2022 budget report released on Saturday. The country is set to implement a proactive fiscal policy that emphasizes precision and sustainability in enhancing its effectiveness, the report said. The budget plan was announced against the backdrop of major domestic headwinds including shrinking demand, supply shocks and weakening expectations, while the COVID-19 pandemic and high commodity prices have added to the pressure. To support regional economies, the transfer payment from the central to local governments will jump 18 percent, reaching almost 9.8 trillion yuan. Source: https://news.cgtn.com/news/2022-03-05/2022-budget-China-increases-public-spending-to-stabilizeeconomy-189rUKL8P3a/index.html Accessed: 10/03/2022 Which of the following policy descriptions…22. Consider a Keynesian model but where both investment and consumption are increasing in aggregate income, e.g., because investment depends on business cash flow. Now that investment depends positively on aggregate income, fiscal stimulus has less effect on equilibrium output. True/False. Remember to include your explanation.10.We discussed four problems (Problems of Timing, Political Consideration, Offsetting State and Local Finance, and Crowding-Out Effect) that complicate the application of fiscal policy. A) List and thoroughly explain these problems, including how each would likely impact the overall effectiveness of fiscal policy. Be specific! Be thorough! You should list the 4 problems associated with Fiscal Policy that were listed in the slides and explain the factors associated with each. And as you address each problem, discuss how each would impact the effectiveness of fiscal policy.
- Using IS/LM diagram explain the likely effects of a fiscal expansion financed bygovernment borrowing on both the domestic interest rate and the level of economicactivityTrue/False 1) Unemploymen benefits are an example of fiscal policy.2) According to Ricardian Equivalence in a strict sense, the tax multiplier is zero.3) When looking at the GDP data from quarter 3 of 2012, government purchases accounted for a larger share of the economy than investment expenditures did.4) According to one of the lectures featuring a pie chart on federal government expenditures, transfer payments went from about 25% of total expenditures in the 1960s to over 46% of total expenditures in 2010.5) As of 2010, interest payments on the federal debt exceeded 10% of totalexpenditures.6) We argued that the tax revenue that the federal government collects ispro-cyclical, that is, when economic activity is growing so is taxrevenue. An example of this is the new economy when tax revenue increased along with the economic growth.7) If aggregate expenditures exceed aggregate income then inventories will rise and firms will eventually lay off workers.8) We argued that cutting the…'The U.S., world's largest economy, went into recession in February of 2020. It has taken a broad range of steps to combat the economic disruption caused by COVID-19. In response to this crisis, governments have enacted sweeping and sizable fiscal stimulus of trillions of dollars.' Is it an appropriate policy response if the primary responsibility of the government is to maintain economic growth? Explain the significance of Fiscal policy for an economy? Is there any difference in the two approaches of fiscal expansion through - direct transfer benefit and government spending directly on purchase of goods and services that may influence real GDP? What role does multiplier play? Explicate. Support your answer with the suitable diagram/s.
- 28. The time between recognizing the existence of a problem and adopting a course of action to deal with the problem is called the A) impact lag. B) recognition lag. C) implementation lag. D) theory lag. 29. Government tax and expenditure policies that affect real GDP are called A) automatic fiscal policy. B) discretionary fiscal policy. C) fiscal policy. D) supply-side policy. 30. The government has a balanced budget if A) its total revenues are equal to its total expenditures. B) its total revenues are less than its total expenditures. C) its total revenues are greater than its total expenditures. D) the money supply is less than total expenditures.QUESTION 7 07. What factors make an expansionary "stimulus" fiscal policy effective? a) A government budget deficit associated with fiscal stimulus should should borrow money from those who spend less and save more, to those who spend more and save less. b) A permanent decrease in taxes is more effective in stimulating spending than a temporary one c) An increase in government purchases of goods and services should be temporary and should not permanently displace private spending d) The most expansionary way of financing the budget deficit associated with a fiscal stimulus policy is by the central bank expanding the quantity of money in circulation. e) Infrastructure investment belongs with long-term growth policy, but invariably makes a poor element in stimulus policy because such investment normally take a long time to implement. f) All the above.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.