PRINCIPLES OF MACROECONOMICS Q1. Explain what are the lags in macroeconomic policies. Do these lags have more effect on monetary policy or fiscal policy and why
Q: 1. Using the chart above, write a short description highlighting positive and negative indicators of…
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Q: Consider the information provided below for the hypothetical country of Zeta Tax revenues = $2,000…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: Circular Flow Model Expand on this simple model by suggesting at least 2 ways in which the…
A: Circular flow model explains how an economy functions. It analyses the way goods, services and money…
Q: What are problems that governments may encounter in enacting and applying fiscal policy? Explain the…
A: Fiscal policy refers to the changes in federal government purchases and taxes. The government…
Q: 9.Fiscal policy can be called on to correct conditions of recession and inflation. a.List and…
A:
Q: 5. (Evolution of Fiscal Policy) What did classical economists assume about the flexibility of…
A: According to classical economists, a change in the prices, salaries, and interest rates of an…
Q: 2. The graph below shows the AD-AS diagram for Canada. 1200+ 1100+ 1000 AD 900 800 - 700+ 600 +…
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Q: Question: What is "Fiscal Policy"? Is the fact that the Federal Reserve is raising interest rates a…
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Q: A) The Government of Bangladesh opted for expansionary fiscal policy to fight economic depression.…
A: Note: As per the guidelines we’ll answer the 1st question. Please submit a new question by…
Q: If US economy moves into an expansion while producing more than potential GDP, then: a) government…
A: When the economy moves into an expansion, actual GDP exceeds potential GDP.
Q: 3. The Keynesian view of fiscal policy Which of the following could cause an increase in the budget…
A: 3(a) Answer- Economic expansion reason- During economic expansion, economic activities in the…
Q: This course is designed to provide an understanding of market economies and the fluctuations they…
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Q: esults in a reduction in the budget deficit. This fiscal policy action results in an increase in the…
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Q: QUESTION-2: Fiscal policy cannot affect the level of GDP if money demand does not depend on the…
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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: 5. Demand side fiscal policy is also known as Keynesian Economic Theory * True O False
A: In simple words we can say that the demand side policies are merely known to be as the economic…
Q: ist the 3 major economic goals of fiscal policy. Who is responsible for fiscal policy?
A: Since you have multiple questions, I would be answering the first two. If you want any specific…
Q: Firstly, explain how monetary and fiscal policy is implemented and how they can be used to influence…
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Q: 1. Use of discretionary policy to stabilize the economy Should policymakers use monetary policy,…
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Q: How is Milton Friedman’s economic theory used in the current (last 20-40 years) fiscal policy? Could…
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Q: The task I am struggling with: The accompanying diagram shows the current macroeconomic situation…
A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…
Q: )Which of the following statements is most accurate regarding fiscal policy and monetary policy?…
A: Policies are undertaken or adopted by the governments of nations for the people living in the…
Q: Directions: Read the following excerpts. Identify whether the policy action is fiscal or monetary…
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Q: Part A Decide whether each of the following fiscal policies of the federal government is…
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Q: 1. Which of the following is a major area of disagreement between activists and nonactivists?…
A: The major area of disagreement between activists and nonactivists is:Option A is correct - Activists…
Q: a) Assume the economy is in a recession. Discuss how the government could implement fiscal policy…
A: Market economy: It refers to a system under which decision regarding various things is considered…
Q: The "crowding-out secondary effect expansionary macroeconomic policy a) For fiscal policy it is…
A: The crowding out effect is an economic theory arguing that rising public sector spending drives down…
Q: 10) Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic…
A: Demand is the total quantity of goods and services for which the consumers are willing to pay…
Subject : PRINCIPLES OF
Q1. Explain what are the lags in macroeconomic policies. Do these lags have more effect on
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- Please answer all question, it's really matter. ( not very long, just short understandable answers) 1. Does the US currently rely more on fiscal policy or monetary policy to stabilize the economy? 2. Does fiscal policy have an expansionary bias? explain 3. Does fiscal policy have an expansionary bias?44)Which of the following statements is most accurate regarding fiscal policy and monetary policy? Select one: a. Monetary policy can be changed more quickly than fiscal policy. Fiscal policy can be changed at any of the FOMC meetings and the smaller number of individuals involved makes it easier to change fiscal policy. b. Fiscal policy can be changed more quickly than monetary policy. Fiscal policy has much shorter delays due to the smaller number of legislators involved. c. Monetary policy can be changed more quickly than fiscal policy. Monetary policy can be changed at any of the FOMC meetings and the smaller number of individuals involved makes it easier to change monetary policy. d. Fiscal policy can be changed more quickly than monetary policy. Monetary policy has much longer delays due to the larger number of legislators involved.Question: What is "Fiscal Policy"? Is the fact that the Federal Reserve is raising interest rates a part of Fiscal Policy? Please select the BEST answer choices from the options provided. A) Yes, when the Federal Reserve increases interest rates the Fed is using fiscal policy to address an economic problem. B) Fiscal policy has to do with the Federal Budget - federal spending and revenue. When the Federal Reserve increases interest rates, the higher interest rates make it more expensive for both public and private entities to borrow and spend. Therefore, spending, both government and private, will decrease. This is why, when the Federal Reserve raises interest rates it is "fiscal policy." C) Yes, fiscal policy has to do with the budget and interest rates. Any action by the Federal Reserve regarding interest rates will be fiscal policy. D) Fiscal Policy is the use of government spending and taxes to deal with the economy's problems such as slow growth, high…
- Define inflation. Explain why inflation is a macroeconomic concern. Question 2: How can the government utilize the instruments within a fiscal policy to stimulate economic activity in an economy experiencing a recession.Question 03 A) The Government of Bangladesh opted for expansionary fiscal policy to fight economic depression. Identify the type of inflation it is expected to create and its impact on the wages. Illustrate the process on the graph. (Maximum 150 words) B) Assume the Pakistan’s economy is in recession: Pakistan implements a combination of expansionary fiscal and monetary policy. In the absence of complete crowding out what will be the effect of these policies on each of the following: (Maximum 150 words) i. Aggregate demand in Pakistan ii. The price level in Pakistan iii. Interest rates in Pakistan1. Which of the following is a major area of disagreement between activists and nonactivists? Group of answer choices -Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree. -Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree. -Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag. -Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree. Which of the following is correct?
- Fiscal and Monetary Policies a. Write down the relationship between Budget Deficits, Debt, Government Spending and Taxes as a ratio to GDP. Explain the four independent variables that affect the ratio of Debt to GDP and the direction of its movement b. Explain the difference between policy rule and policy discretion in monetary policy. Please provide examples.Monetary policy For the first time since 2006, the Federal Reserve voted to raise interest rates by a one-quarter percentage point in December 2015. Prior to this increase, interest rates had remained between the 0.00% - 0.25% range, an area called “the zero lower bound.” The Federal Reserve had driven interest rates down that low as a means of helping the economy get back on its feet after the Financial Crisis. The reasoning was that consumers and businesses needed access to loans so that production could turn around. (Consumers take out loans to buy high price items like cars and homes. Businesses use loans as a means of expanding their business. In both instance, more goods will be produced.) The increase in 2015 moved rates to the 0.25% - 0.50% range. As of October 2018, interest rates have moved to 1.00% - 1.25% range. For this discussion board, I want you to do some research into the “Financial Crisis.” Why did it occur? Can you characterize the behavior of the…Directions: Read the following excerpts. Identify whether the policy action is fiscal or monetary and expansionary or contractionary. Draw and label the change that would occur on the ADAS graph as a result of the policy action described in each. Identify what will happen as a result of the policy to the price level, employment, and real GDP. Excerpt from Public Law 110-85 of the 110th Congress: Signed into law by President George W. Bush February 13, 2008 “To provide economic stimulus through recovery rebates to individuals, incentives for business investment, and an increase in conforming and FHA loan limits. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. Title I – Recovery Rebates and Incentives for Business Investment … Sec. 101. 2008 recovery rebates for individuals. Sec. 102. Temporary increase in limitations on expensing of certain depreciable business assets Sec. 103. Special allowance for certain property…
- Explain the difference between fiscal policy and monetary policy. What are some of the reasons these macroeconomic policies are used?The Government of Bangladesh opted for expansionary fiscal policy to fight economic depression. Identify the type of inflation it is expected to create and its impact on the wages. Illustrate the process on the graph. Assume the Pakistan’s economy is in recession: Pakistan implements a combination of expansionary fiscal and monetary policy. In the absence of complete crowding out what will be the effect of these policies on each of the following:(i) Aggregate demand in Pakistan(ii) The price level in Pakistan(iii) Interest rates in PakistanDirections: Read the following excerpts. Identify whether the policy action is fiscal or monetary and expansionary or contractionary. Draw and label the change that would occur on the ADAS graph as a result of the policy action described in each. Identify what will happen as a result of the policy to the price level, employment, and real GDP. Excerpt from Public Law 111-5 of the 111th Congress: Signed into law by President Obama February 17, 2009 “Making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. TITLE XII—Transportation, Housing and Urban Development, and Related Agencies …projects eligible for funding provided under this heading shall include, but not be limited to, highway or bridge projects eligible under title 23, United…
