(Policy Lags) What lag in discretionary policy is described in each of the following statements? Why do long lags make discretionary policy less effective (explain a-d)?  a. The time from when the government determines that the economy is in recession until a tax cut is approved to reduce unemployment  b. The time from when the money supply is increased until the resulting effect on the economy is felt  c. The time from the start of a recession until the government identifies the existence and severity of the recession  d. The time from when the Fed decides to reduce the money supply until the money supply actually declines

Q: 8 How is the above stimulus bill going to be financed? According to the (Keynesian) theory in the…

A:

Q: 1. If the government is required to balance the budget and the economy falls into a recession, which…

A: 1. If the government is required to balance the budget and the economy falls into a recession, the…

Q: 14) The relationship between monetary policy and the time it takes for policy to change spending is…

A: The monetary policy is the policy of the monetary authority of the economy regarding the money…

Q: 21. If taxes a. increase, then consumption increases, and aggregate demand shifts leftward. b.…

A:

Q: COURSE: MACROECONOMICS - FISCAL BALANCE  The government of country X, faced with a fiscal deficit,…

A: Answer: Due to an increase in government spending, the aggregate demand in the economy will…

Q: What happens when the government temporarily runs a deficit by spending more on public stimulus…

A: Deficit When spending surpass receipts, a budget deficit arises, and it indicates a country's…

Q: 9.Fiscal policy can be called on to correct conditions of recession and inflation.  a.List and…

A:

Q: 1. How did U.S. government responded to global health pandemic? What kind of steps have they taken?…

A: Hey, Thank you for the question. As per our honor, code we can answer only first three sub-parts of…

Q: 10) If aggregate demand shifts left and the President and Congress want to use fiscal policy to…

A: Aggregate demand curve is a downward sloping demand curve indicating negative relationship between…

Q: 1. Recommend fiscal policy that is most likely to be invoked during a period of recession or high…

A: Fiscal policy is a tool in the hands of government officials to influence the growth of…

Q: Suppose that consumers have a major change in their consumption/savings preferences. As a result of…

A: Answer in step 2

Q: Question: What is "Fiscal Policy"? Is the fact that the Federal Reserve is raising interest rates a…

A: Fiscal policy: Policy of government to increase or decrease inflation,to maintain stable growth in…

Q: If the government chooses to reduce government expenditure or to increase taxes,       according to…

A: Government expenditure is one of the component of aggregate demand, so any decrease in one of the…

Q: 11. Inflation and Nominal Returns Suppose the real rate is 2.25 percent and the inflation rate is…

A: Here, given information is: Real rate: 2.25% Inflation rate: 3.2% To find: impact on treasury…

Q: Question 1 A policy instrument such as fiscal policy: O is the result of achieving an objective O is…

A: The policies and decision making authorities in the economy are considered of utmost importance…

Q: Which of the following would increase aggregate demand?     Increase in savings.   Increase…

A: The curve that depicts quantities of goods and services being demanded by consumers at various…

Q: reduction in government expenditure or an increase in taxes is defined as:

A: Expansionary policy is employed with the aim of boosting aggregate demand when private demand is…

Q: 15. Which of the following pairs of terms is used to describe fluctuations in the economy? a) Real…

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

Q: 1. Contrast what the Federal government tends to spend money on relative to state and local…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

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

A: The fiscal policy impact not only affects the demand side but also the supply side. The most…

Q: In the long run, a decrease in government purchases of military equipment would cause aggregate…

A: Government expenditure is one of the components of aggregate demand.

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: Fiscal Policy and how it can be implemented in a recessionary gap.   Recently, COVID-19 has…

A: As we know that Pandemic pushed the many economy years back almost all countries . There growth rate…

Q: 19. Gross investment is the total amount spent on purchases of new capital and on replacing…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: 1. Expected inflation can be estimated as the return on a TIPS bond the return on a Treasury bond…

A: Expected inflation refers to the future estimation of an increase in general price of goods and…

Q: 14. Suppose that Korea has been in recession and many economists have concerns about the long-term…

A: Recession: A recession can be defined as a macroeconomic phrase that denotes a considerable drop in…

Q: 9.  The lag associated with fiscal policy can:   magnify economic fluctuations. stimulate output…

A: Fiscal Policy:- The use of spending of government and taxation policies in order to impact market…

Q: Topic: Fiscal Policy 1. A government collects $0.35 on every new dollar of income. Of the remaining…

A: The marginal propensity to save shows the percentage of new income saved. The marginal propensity to…

Q: 10) If aggregate demand shifts left and the President and Congress want to use fiscal policy to…

A: When the aggregate demand curve shifts leftward, it indicates the reduction in the demand. As a…

Q: 1)How do markets to Shifts in the Demand and / or the Supply curve.What is the difference between a…

A: Since there is multiple question posted, we will answer first question.  If you want any specific…

Q: Question 11 An increase in government spending with no change in taxes leads to a: O higher interest…

A: The entities in an economy assist in the economic, and financial growth of the nation. These…