factors affecting the increasing purchase of goods and services

Q: What are the president's budget request responsibilities?

A: President's budget request: The budget process in the U.S begins when the President submits a budget…

Q: Explain how an increase in government spending may decrease private investment (crowding-out…

A: When government raises its expenditure on investment, it leads to a rise in the aggregate demand in…

Q: Fiscal policy is spending and taxation of the executive branch of the federal government; in…

A: Fiscal policy is the use of taxation and spending to influence the economy. It determines how much…

Q: Explain the role of the Presidency and the Congress in the budget proces

A: A budget process refers to the mechanism by which a budget is generated and approved by government.

Q: True or False: Pensions and income security make up the largest share of federal expenditures.

A: The expenditure of the economy is divided in two parts which are state and central government…

Q: 1) Distinguish between discretionary and nondiscretionary fiscal policy.

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Instead of paying transfer (TR) if the government were to increase government spending (G), what…

A: The transfer payment is described as government payments to the individual by social programs like…

Q: Which one of the following statements regarding fiscal policy and the budget is (2) correct?  A…

A: Fiscal policy is the use of government spending and taxes to influence the level of money supply in…

Q: Who prepares and passes the federal budget?

A: The United States federal budget involves the spending and incomes of the U.S. national government.…

Q: Why is the tax multiplier smaller than the government spending multiplier?

A: In a market, the government has two ways to influence the behavior of market factors. It may change…

Q: What must be true about the level of government expenditures and tax revenues for the federal…

A: Government expenditure is the amount spent by the government in order to provide goods and services…

Q: What does an increase in the income tax rate​ illustrate? An increase in the income tax rate is an…

A: What does an increase in the income tax rate​ illustrate? In general, [income] tax rate increases…

Q: Discuss the two (2) main tools that a government can use to implement fiscal policy.

A: The term 'fiscal' relates to the government's budget and signifies 'budget.' Fiscal policy is the…

Q: The two largest areas of federal spending which impact the U.S. budget are

A: In total federal spending, social security contributes to highest with 33 % and then medicare and…

Q: What are the factors affecting the increasing purchase of goods and services in the government in…

A: Government funding provides greater revenue to households, resulting in higher consumer spending. As…

Q: Problems with the federal government budget process include: O a. budgeting that increases the…

A: When economic agents take part in the production process, they get an income in exchange for labour.…

Q: True or False and explain: Fiscal Policy is effective at reducing the duration of an economic…

A: Fiscal policy refers to the method of government spending and tax policies to control the economic…

Q: List and briefly explain the time lags involved in discretionary fiscal policy.

A: Discretionary fiscal policy implies the public authority makes changes to taxation rates as well as…

Q: 3. In each of the following cases, explain whether the fiscal policy is expansionary,…

A: The use of government revenue collection (taxes or tax cuts) and expenditure to impact a country's…

Q: Explain expansionary and discretionary fiscal policy (300 words)

A: Fiscal policies define as the government's policy which is used to control the money supply in the…

Q: Question: What Must Be True About The Level Of Government Expenditures And Tax Revenue... What must…

A: Government budget: - The government budget is the description of the government's expected revenue…

Q: Giving examples, outline the reasons for using a discretionary fiscal policy

A: Fiscal policy: It refers to a policy that is used by the government. It is a policy used to tackle…

Q: Why $100 spent by government brings a larger increase in the equilibrium level of income than $100…

A: The value of government purchase multiplier is: The tax multiplier is:

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: equal to $1,000. What is the value of government purchases? And would the government have a budget…

A: For a closed economy, the output is sum of investment(G), consumption(C) and net government…

Q: Government spending in the u.s federal budget that congress can adjust as it wishes is called ?

A: Major portion of the federal budget goes towards mandatory programs of social security, medicare and…

Q: discuss the budget cycle.discuss why the annual budget is considered as a political act of state?

A: Budget is a financial plan for a specified future period of time. The budget presents an estimation…

Q: The following is information for the economy of Texas, where taxes are wholly autonomous: C = 40 +…

A: The level of income can be calculated through the expenditure method by taking the consumption,…

Q: Why is government spending typically measured as a percentage of GDP rather than in nominal dollars?

A: Government: It refers to the group of people who handle the country and helps the economy grow. The…

Q: Create a framework of procedure governing the planning and implementation of budgetary policies.…

A: Budgeting and policy-making are difficult to reconcile in any environment. Transitional economy…

Q: For the U.S. government, which of the given is NOT an example of discretionary spending? defense…

A: Answer is Medicare. Medicare spending is not an example of discretionary spending and it does not…

Q: Compare two fiscal policies: a tax cut on income or an increase in government spending on roads and…

A: FP is a tool of government to stimulate the economy. It includes government expenditure and taxes,…

Q: When governments run budget deficits, how do they make up the differences between tax revenue and…

A: A government budget is a statement of its planned expenditures and revenue receipts for a given time…

Q: What are the tools of fiscal policy? Give sample and explain.

A: Fiscal policy refers to the use of taxation and government spending by the government to influence…

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: Which of the following is not a means of financing government spending? Government subsidies…

A: The government mainly finance its spending on the economy with the help of tax revenues it earns.…

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…

Q: Suppose that in 2012 the government collected $320 billion in revenue and spent $380 billion, while…

A: Additional deficit on 2012 =$320- $380= -$60 billion