Parliament is debating the option of implementing a value added tax (vat) as a means to cut the government deficit.  classify as microeconomics or macroeconics and provide a justification for your answer

Q: In order to boost output, the federal government engages in fiscal policy, which government spending…

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Q: Fiscal policy determines the level of interest rates.True or False

A: Fiscal policy: It refers to the policy which is used by the government so that it can make…

Q: The importance of fiscal policy during times of economic recession.

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: The graph below depicts an economy where an increase in aggregate demand has caused inflation.…

A: The change in the aggregate demand brings about the change in the output and price level. The change…

Q: A recent study from the National Bureau of Economic Research examined what people did with the…

A: Since you have asked multiple questions, we will answer the first two sub-parts for you. If you want…

Q: The debate over using government spending and taxing powers to stabilize the economy involves more…

A: We show that Economists ànd policymàkers disagree on how to spend government money and tàx revenue…

Q: If stability of the economy is the primary objective of Fiscal Policy, then an Annually Balanced…

A: An annual balanced budget refers to when the spending of the government during a fiscal year equals…

Q: Suppose that the economy is slumping into recession and needs a fiscal-policy boost. Voters,…

A: Fiscal Policy deals with government spending and changes in tax rates where as monetary policy…

Q: True/False  Unemployment benefits are an example of fiscal policy.

A: An unemployment benefit refers to a benefit provided to an unemployed person by the state in terms…

Q: Was fiscal policy effective when the US economy was experiencing stagflation during the 1970s? Why…

A: Stagflation alludes to a circumstance when the economy was confronting high inflation and high…

Q: A deficit caused by an increase in government spending needed to offset reductions in consumption…

A: A budget refers to a prediction of revenue and expenditures for a certain time period that is…

Q: Why Krugman believe that fiscal austerity in france or more generally in Europe would fail?

A: Fiscal austerity is used to define the steps or the direction taken by government which leads to…

Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…

A: The aggregate demand refers to the total amount of all the goods, and services which are demanded in…

Q: For questions 34-39 choose whether each is an example of: fiscal policy a. discretionary b.…

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

Q: Deficit spending" refers to a situation where the government:  A. Spends borrowed funds B. Collects…

A: When tax revenue collected by the government is equal to government spending the situation is known…

Q: Which of the following is NOT a component of federal fiscal policy?   A. Federal tax revenues…

A: The fiscal policy plays an important role in stabilizing an economy. By synchronized with monetary…

Q: For the last 50 years or so, republicans and democrats at the national level have each favored…

A: The impact of a tax cut, Increase spending, Higher economic growth, Government borrowing, government…

Q: What is considered "too much" debt or "too large" a deficit?  Are you able to provide any guidelines…

A:

Q: How is Milton Friedman’s economic theory used in the current (last 20-40 years) fiscal policy? Could…

A: Milton Friedman was an American economist and statistician who believed strongly in free market…

Q: The federal government's use of taxation and spending policies to stabilize the economy is APhysical…

A: The charge which is being levied being imposed upon a legal entity or individual for funding…

Q: Which of the following might increase the government budget deficit?     contractionary fiscal…

A: Government can have balanced budget, budget deficit or budget surplus. Government imposes tax to…

Q: In 2010 the Greek government had to inform the European Commission on how it would control its…

A: The Greece crisis was one of the biggest financial rescue of a bankrupt country. In 2009, the…

Q: Suppose the government implements contractionary fiscal policy. As a result, the inflation rate will…

A: Actions by the government to either expand or tighten the economy, are under the “fiscal policy”,…

Q: how does the fiscal policy handle the major macroeconomic failures of unemployment?

A: The failure of unemployment has been a major issue of concern regarding the macroeconomic conditions…

Q: Which of the following is a reason for using expansionary fiscal policy during a recession? a)…

A: A recession is a period of economic slowdown. It is defined as a significant decline in economic…

Q: A deficit during a period of economic prosperity is called a deficit.

A: The expansion and peak periods of the business cycle are referred to as an economic boom. It's also…

Q: ways in which the unemployment problem can be solved using a fiscal policy stimulus

A: There are basically two ways by which the problem of unemployment(u) can be reduced: Demand(D) side…

Q: "If I am elected I will reduce the deficit" -every politician in history Which of the following best…

A: Deficit is the gap between spending and earning. A government facing a fiscal deficit means it has…

Q: Key limitations to fiscal policies.

A: Fiscal Policy is that the use of state spending and taxation levels to influence the amount of…

Q: Fiscal Policy) Was fiscal policy effective when the U.S. economy was experiencing stagflation during…

A: Fiscal policy is the policy used by government to stabilize the economy in the business cycle. The…

Q: Which of the following is an example of active fiscal policy? a.Government expenditures rise during…

A: Fiscal policy refers to deviations in government spending and taxes, which are proposed to achieve…

Q: key limitations to fiscal policy

A: There are various limitations to fiscal policy. These are mentioned below:

Q: onary Fiscal Policies while others are in favor of Expansionary Monetary Policies. Prepare a…

A: Monetary policy involves changing of the interest rate and influencing the supply of money.Fiscal…

Q: To combat inflation, the federal government could apply which fiscal policy? decrease government…

A: Fiscal policy refers to changes in government spending and taxes.Monetary policy refers to changes…