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- Determine the adverse macroeconomic consequences that a government faces when it maintains a long-term pattern of substantial budget deficits.What are the changes proposed by Budget 2021 in context of Income tax and their impact on macroeconomic factors.Economic Ricardian equivalence implies that government budget deficits need not crowd out investment spending. True or False
- Two main macroeconomic impacts of a large government debt are Group of answer choices a. crowding-out of private investment and reduction of government spending b. lower economic growth and a decrease in public investment c. lower interest rates and a decrease in public investment d. future increase in distortive taxes and a reduction of government spendingThe macroeconomic effects of federal investment can decrease if : a.State and local governments tax investment spending towards other non-investment areas. b.State and local governments complement federal policy by also increasing investment. c.State and local governments keep local investment spending unchanged. d.State and local governments substitute investment spending towards other non-investment areas.Ricardian equivalence implies that government budget deficits need not crowd out investment spending. True or False
- Explain how governments need to recognise the impact of several time lags as a problem in fiscal policy design.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 increasing government spending and lowering income tax increasing both government spending and income tax 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 information lag decision lagExplain your decision making regarding government expenditure and how it changed based on the macroeconomic conditions. What was the intent of your fiscal policy decisions in response to the given economic climate? Evaluate your fiscal policy decisions, including how they impacted key macroeconomics factors such as real GDP growth and unemployment. To what extent did your policies yield positive or negative outcomes? Refer to the AD/AS model to support your analysis in this section of your report.
- Social Security and Medicare create a fiscal gap because _______. A. the benefits today exceed the tax revenues to support these programs B. outlays on these programs today minus tax revenues contribute to the government budget deficit C. future generations will have to pay for the benefits received by the current generation D. the present value of current and projected future outlays exceeds those of future tax revenuesA short-run AS/AD economy has an AS/AD spending multiplier of 2.0 and an income tax rate of t = 0.3. A budget deficit of 60 dollars can be eliminated if government spending is reduced by ________ dollars. Round your final answer to two decimal places.A government is facing a significant budget deficit due to high levels of public spending and declining tax revenues. To address this, several measures are being considered, including cutting public expenditures, increasing taxes, and implementing more efficient tax collection methods. The impact of a budget deficit on an economy can include increased national debt and potential inflationary pressures. In this situation, the most effective approach to address the budget deficit would be:A) Borrowing more funds internationallyB) Cutting essential public servicesC) Increasing taxes and improving tax collectionD) Privatizing all public services Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.