Given the federal budget deficit in recent years, some economists have argued that by adjusting Social Security payments for inflation using the CPI, Social Security is overpaying recipients. What is their argument, and do you agree or disagree with it?

Q: Explain how discretionary fiscal or monetary policies can be used to bring down the inflation rate.…

A: Fiscal policy is the policy of the government regarding the fiscal matters such as the tax rate of…

Q: 2.3 (Inflation and Interest Rates) Using a demand-supply diagram for loanable funds (like Exhibit…

A: The loanable funds theory is a neoclassical model that defines how interest rate is determined in…

Q: Why did president Trump oppose the TPP

A: TPP (Trans-Pacific Partnership) is a trade deal, a 12 countries commitment which aimed to create a…

Q: How can one apply monetary policy and fiscal policy to the business cycle, budget surpluses, and…

A: Monetary policy: Monetary policy are the policy measures that are being taken by the central bank of…

Q: What are implications for a government running deficits?How could that be effectively addressed?What…

A: The economies around the world tend to focus on enhancing their economic growth in a way that  it…

Q: Discuss policies that the government could use to combat the impact of inflation.

A: Inflation is the gradual increase in the price level over a certain time period. Inflation tends to…

Q: What are the the Costs and Benefits of Deficits?

A: The deficit is the situation when expenditure is higher than the revenues of an economy.

Q: If the primary goal is to reduce inflation, which of the following fiscal policy actions would be…

A: Fiscal policy refers to change in government expenditure and revenue(taxes) in order to achieve…

Q: in a borrowing agreement, who wins and loses when inflation is unexpectedly low? Explain how…

A: "Since you have posted multiple questions, I can only answer the first question, rest you need to…

Q: Based on the concept of demand-pull inflation, when the economy is at, or very close to,…

A: Demand-pull inflation: When there is more demand then it will lead to an increase in the price of…

Q: List and explain the 3 Fiscal Policy tools that reduce inflation (Decrease government spending, Tax…

A: Fiscal Policy tools that reduce inflation are:Decrease in government spending:Government spending…

Q: Explain what effect a large federal deficit might have on interest rates?

A: The deficit in the budget arises when the government faces higher government spending with lesser…

Q: Which economic policy, fiscal policy or monetary policy, is preferable for undesired increases in…

A: Continuous rise in prices leads to inflation. This could be controlled by contractionary monetary…

Q: Which of the following describes a situation in which the person is hurt by inflation? Select one:…

A: Inflation is an general increase in the overall price level.

Q: in 50 words. what is meant by the ‘cap’ on Social Security?

A: Social security is defined as the protection that a society provides its citizens against certain…

Q: The 2008 financial crisis had a dramatic impact on the wealth of households. ? Was the recovery of…

A: As we know that in communist type of government, there is complete control of government over the…

Q: when is the most appropriate time economically speaking for the federal budget be in a deficit?

A: A budget deficit is a situation when government spending exceeds the government's total income. A…

Q: Describe the fiscal and monetary measures that are normally taken to curb inflation.

A: FISCAL MEASURES 1- The two main important tool of fiscal measures are revenue an dtaxes. 2- To…

Q: differentiate three types of inflation.

A: Interest is defined as a chronic and sustained price rise caused by increase in the supply of money.

Q: If inflation is less than expected, who benefits—debtors or creditors? Explain.

A: If inflation is less than expected, then creditors will benefit, and debtors will loose. This is…

Q: a government is facing high inflation, then it will take an action as following:   I. increase…

A: Answer: Correct option: 1 (increase taxes, increase discount rate) Explanation: Inflation refers to…

Q: Suppose all wages, salaries, welfare benefits, and other sources of income were indexed to…

A: The economies around the world tend to focus on their growth, and development, where the decision…

Q: Explain what kind of fiscal policy and what kind of monetary policy are likely to reduce GDP.

A: Fiscal policy: - it is a tool of the government of a country in which the government adjusts its…

Q: 17. Which of the following is used as a remedial measure during inflation in an economy? a.…

A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…

Q: Why do we need to calculate the average inflation rate?

A:

Q: Suppose a country has a money demand function (M/P)d= kY, where k is a constant parameter. The money…

A: The money demand function reflects the relationship between the nominal money supply (M), price…

Q: can you explain this for me? this is a true or false statement: "increasing welfare payments by…

A: The deficit is the situation where the country’s expenditure exceeds the country’s revenue.

Q: There is a consumer who lives for two periods. His income is given by Y1 and Y2. He has access to…

A: Since the question you have posted consists of multiple parts, we will answer the first two…

Q: Assume there is a desire to reduce unemployment in an economy. Describe two (2) expansionary fiscal…

A: To reduce unemployment, government should implement expansionary fiscal policy using following…

Q: Suppose a country has a money demand function (M/P)d=kY, where k is a constant parameter. The money…

A: Inflation: It refers to the increase in the economy's prices and services. The more inflation in the…

Q: Analyze the challenges that the US economy is facing to reduce the deficit

A: The challenges that the US economy is facing to reduce the deficit are the slow growth, lower…

Q: Which one is better at dealing with inflation: demand-side or supply side policies?

A: The demand-side(D) and supply-side(S) policies are policies used by the government and the monetary…

Q: How is the Social Security system currently influencing the size of the budget deficit? If it is not…

A: The budget deficit creates the problem in the economy. When there is budget deficit, it will leads…

Q: Inflation and Interest Rates) Using a demand-supply diagram for loanable funds, show what happens to…

A: There is an inverse relationship between the real interest rate and expected inflation rate. So, if…

Q: With the following images, explain what is meant by a cyclical deficit

A: A deficit arises when costs exceed income, imports outweigh exports, or liabilities exceed assets in…

Q: If the government increases it discretionary expenditure, explain how the structural deficit might…

A: Nonessential expenditure of government is known as the discretionary expenditure. The chronic…

Q: Many countries have constitutional requirements that their budgets be in balance (or in surplus) in…

A: A balanced budget refers to when, during a given period, the government spends an amount equal to…

Q: Describe Inflation and how it is measured? Ascertain the Fiscal and Monetary policies that are…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: the effects of indirect taxes on inflation and demand

A: Answer: Introduction: Indirect tax: it refers to the tax that is imposed on manufacturers or…