Fiscal and Monetary Policy Assignment When the economy gets into serious problems, the government has two policies that offer the potential to get us back to equilibrium. Fiscal Policy works through government spending and taxes, while Monetary Policy works through the money supply. Read each scenario below and decide what the correct fiscal and monetary policy would be to correct the issue. 1. You read the following information on the economy. The economy has fallen into a

Fiscal and Monetary Policy Assignment When the economy gets into serious problems, the government has two policies that offer the potential to get us back to equilibrium. Fiscal Policy works through government spending and taxes, while Monetary Policy works through the money supply. Read each scenario below and decide what the correct fiscal and monetary policy would be to correct the issue. 1. You read the following information on the economy. The economy has fallen into a

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 5P

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3. Think about an anticipated fiscal policy that could help to fight unemployment without creating inflation. Use the Lucas model.
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Comment on either (a) the type of fiscal policy or monetary policy that is currently being implemented, or (b) the type of fiscal policy or monetary policy you think should be implemented. In your comment you might discuss how government spending, taxes, or interest rates are or should be being changed and why.
Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to recover from the negative effects of this COVID‐19 pandemic. Your answer must include the following:  The description of the type of fiscal policy required; (4)  An explanation of how the implementation of this tool will work their way through the economy to achieve the desired effect; (6)  The AD‐AS graph showing the implications of your recommendations. (5)
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A Fiscal Stimulus Program to Fight the Corona Crisis?The German government wants to decide about the design of a stimulus package to combatthe economic consequences of the Corona pandemic.Task 1 Assume that the German economy is currently fully described by the following equations(with C= Consumption, Y= Income, T= Tax):C = 260 + 0.6(Y-T)T = 0.2YCurrent investments are 400 and government expenditures are 380.Three policy options are discussed:Option A: No stimulus programOption B: Additional government spending of €156 billionOption C: As option B, but a part of the additional government expenditures will be used forincentives to invest in renewable energy as such that an increase in private investments by 26can be expected.Calculate equilibrium income and the budget surplus for all 3 Options. Are all options in linewith the Maastricht government deficit criteria?
In an attempt to promote renewable energy, the government provides an annual rebate to those who install solar panels on their roofs. What type of economic policy would this represent? a) Fiscal policy b) Monetary policy c) Both fiscal policy and monetary policy d) Neither fiscal nor monetary policy
Imagine that a group of advisors to the president has suggested providing a tax cut for the middle class in order to stimulate the economy and reduce unemployment. The president has asked for your analysis of this proposed tax cut. Post your thoughts both as an economic scientist and economic policy advisor. Read the scenario and, respond to the following: Describe how an economic scientist would approach the tax cut recommended by the advisors in the scenario you just read. What are some economic factors that the economic scientist would consider when crafting his or her statement on the tax cut proposed? Describe how an economic policy advisor would approach the same tax cut and provide the reasoning behind the position. Remember to think like an economist scientist and economic policy advisor when you write your post, even if it goes against your own opinions about whether a tax cut is a good idea. To guide your responses, consider the following questions: What economic…
A Fiscal Stimulus Program to Fight the Corona Crisis?The German government wants to decide about the design of a stimulus package to combatthe economic consequences of the Corona pandemic Assume that the German economy is currently fully described by the following equations(with C= Consumption, Y= Income, T= Tax):C = 260 + 0.6(Y-T)T = 0.2YCurrent investments are 400 and government expenditures are 380.Three policy options are discussed:Option A: No stimulus programOption B: Additional government spending of €156 billionOption C: As option B, but a part of the additional government expenditures will be used forincentives to invest in renewable energy as such that an increase in private investments by 26can be expected.Calculate equilibrium income and the budget surplus for all 3 Options. Are all options in linewith the Maastricht government deficit criteria
The Thai economy is at its potential level. Illustrate and explain the impact of the Covid-19 pandemic on Thailand using the IS-LM-PC model. Besides the Bank of Thailand reduced its policy rate, the Thai government has recently announced a massive stimulus package of 1.9 MM baht. Use the IS-LM-PC model to show the effect of these policies on Thai economy. Draw the graph and explain. Suppose that the 1.9 MM baht stimulus package does not sufficient to support the Thai financial system and also leads to the government debt crisis. What would happen to the Thai economy? Draw the graph and explain using the IS-LM-PC model
Finance Minister Enoch Godongwana announced during his budget speech that South Africans can receive up to R15,000 in tax rebates for solar panels starting from 1 March" This is an example of... O A. Fiscal policy B. Monetary policy O C. Income policy O D. Foreign trade policy
Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to recover from the negative effects of this COVID‐19 pandemic.Your answer must include the following:The description of the type of fiscal policy requiredAn explanation of how the implementation of this tool will work their waythrough the economy to achieve the desired effect;The AD‐AS graph showing the implications of your recommendations.