ifference between keynesian and supply-side fiscal policies.

Q: What is the importance of fiscal policy during times of economic recession?

A: Fiscal policy refers to the type of the economic policy in which the government of a country tries…

Q: Is expansionary fiscal policy more attractive to politicians who believe in larger government or to…

A: The fiscal policy is the policy of the government regarding the taxation and the government…

Q: Which of the following are consistent with Contractionary Fiscal Policy O Lower Government Spending…

A: find below the answer.

Q: Distinguish between automatic fiscal policy and discretionary fiscal policy. What type of fiscal…

A: Fiscal policy refers to the government policy regarding tax and government spending which stabilizes…

Q: Discuss the difficulty in predicting the effects of discretionary fiscal policy.

A: Fiscal policy is the process through which a government modifies its spending and tax rates in order…

Q: How does fiscal policy affect the equilibrium income in an economy

A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…

Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: Answer the questions below. a. Discuss why the aggregate supply (AS) curve is relatively flat within…

A: The aggregate supply curve shows the various level of real output at different price levels for the…

Q: Discuss the government’s use of discretionary fiscal policy in controlling economic fluctuations.

A: Fiscal policy refers to the government policy of expenditure and taxes. The changes in the tax and…

Q: Council Economic Advisers (CEA)

A: The Council Economic Advisers[CEA] consist of three members. The Chairperson, who is appointed by…

Q: Define what is 'automatic stabiliser' in fiscal policy, and provide 2 examples

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…

Q: What is the main advantage of automatic stabilizers over discretionary fiscal policy?

A: Fiscal policy(FP) tools can be implemented in two types that are automatic stabilizers and…

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

A: The two kinds of macroeconomic policies adopted to tackle the demand or supply shocks faced by an…

Q: Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in…

A: Automatic stabilizers are economic parameters that act automatically to counter the fluctuations in…

Q: Describe the shortcomings of Fiscal Policy. Be as thorough as possible.

A: Fiscal policy is the one where government changes its spending and tax policies in order to achieve…

Q: Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be…

A: Contractionary fiscal policy:- When the government either slashes expenditure or hikes taxes, it is…

Q: and

A: Supply-side economics is theory postulating that tax cuts for the wealthy result in increased…

Q: Derive and discuss the three major fiscal policy multipliers

A: Assuming an open economy where output is exactly equal to the sum of consumption expenditure,…

Q: What is fiscal policy and what is the crowding out effect of expansionary fiscal policy?

A: Government use various policy instruments in the economy to properly balance and maintain it and…

Q: Tools ofmonetary policy and fiscal policy?

A: Monetary policy is the macroeconomic policy used by central bank in order to affect money supply and…

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: Distinguish between discretionary and nondiscretionary fiscal policy. What is the difference? What…

A: SUMMARY- Discretionary fiscal policy alludes to the policy drives taken up by the public authority…

Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

A: 1) An expansionary fiscal policy will be better suited for the scenario of rise in natural rate of…

Q: Explain the instuments of Fiscal policy.

A: Monetary and fiscal policy are the 2 most important type of policies in the economy. Monetary policy…

Q: Describe the supply-side effects of a fiscal stimulus and explain how a tax cut will influence…

A: The supply-side effects of fiscal-stimulus: Fiscal-stimulus can be given in the form of higher…

Q: Fiscal Policy

A: Introduction of Fiscal policy:-It is a policy via which a government makes adjustments in its tax…

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: What are problems that governments may encounter in enacting and applying fiscal policy? Explain the…

A: Fiscal policy is tools available to government to counter the economic imbalances, using an…

Q: By using graphs, show and explain the effects of an expansionary fiscal policy on the goods market…

A: Expansionary fiscal policy is defined as how the government initiates with spending more and even…

Q: Why is it important for a government to stimulate itseconomy through an active fiscal policy?

A: A fiscal policy is the policy which a government uses to influence the output and the employment of…

Q: xplain the supply-side effects of fiscal policy on employment and potential GDP

A: Employment increases when production activities increase in the economy because when producers…

Q: Explain the difference between “active” discretionary fiscal policy advocated by mainstream…

A: During recessions, active discretionary fiscal policy entails the use of deficit spending, that is,…

Q: Explain how the two main tools of fiscal policy can be applied by a government in the…

A: "Government make use of fiscal policy in order to stabilize a country's economy. Government while…

Q: What do you understand from the sustainability problem of the fiscal stimulus packages implemented…

A: When the economy is facing a recession, the government can stimulate the economy by using…

Q: What issue or problem in the economy would be fixed with expansionary fiscal policy? Contractionary…

A: Expansionary-Fiscal policies are targeted towards increasing the consumption in the…

Q: What are the Cost and then benefits of contractionary fiscal type in the economy

A: The policy that is used by the government during high phases of growth of the economy is being known…

Q: Give a numerical example and illustrate the difference between complete crowding out, incomplete…

A: Crowding out is a situation in which an increase in government spending or investment causes a drop…

Q: Outline the supply-side view of fiscal policy. How does this view differ from the various…

A: In the Supply- side view, the output of the economy is stimulated to increase by increasing the…

Q: Explain how the implementation of this policy is related to the simple spending multiplier. Explain…

A: Fiscal policy is a branch of monetary policy where the government try to manage the or adjust the…

Q: which of the following individuals would most likely favor an increase in government spending, as…

A: a and d would be opposed to tax cut.

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.