Refer to the figure above. A Keynesian fiscal policy to eliminate a recessionary gap can be portrayed as a move between points: O D to A. B to A. D to C. B to C.

Q: Which of the following is not a weakness of fiscal policy? O a. Fiscal policy might have undesirable…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Time lags, crowding-out, and savings shifts are all O a) examples of countercyclical fiscal policy.…

A: The policy that makes use of taxation and government spending for influencing the economy is being…

Q: d. Draw a Keynesian-cross model. Label the output level of 1,400 and the equilibrium output level,…

A: * SOLUTION :-  As per guidelines I answered  three sub parts only  Thankyou.

Q: Question 15 Suppose the government decides to increase taxes by $30 billion to increase unemployment…

A: The correct answer is given in the second step.

Q: Which of the following statements about the economic fallout of the Covid-19 pandemic is false? O.…

A: The Covid 19 pandemic is one of the uncertainties that influenced the economies of almost all the…

Q: 4. If the AD excess is $400 billion and the MPC is 0.9, a) How much fiscal restraint is desired? b)…

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

Q: Which of the following could cause a decrease in the budget deficit? Check all that apply. O…

A: The question is answered below steps based on the application of all the given options

Q: Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to…

A:

Q: SRAS PL2 PL AD2 AD Y,Y2 REAL GDP The Aggregate Demand Model shows an increase in Aggregate Demand or…

A: The given figure shows the increase in aggregate demand. Prices and output are increased.

Q: Suppose legislation required the government to balance its budget annually. With regard to real GDP,…

A: When government wants to maintain balanced budget in the economy, total revenue of the government…

Q: What is the crowding-out effect? How does it modify the implications of the basic Keynesian model…

A: "Since you have asked multiple questions, we will answer only first two questions for you. If you…

Q: (d) Due to the coronavirus pandemic the government of Taxmania increases expenditure on healthcare…

A: In the macroeconomic model of AD-AS, aggregate (AS) supply refers to the total amount of services…

Q: Diagram 1 Price Level (PL) O ADO O AD1 YF O AD2 ADS O AD3 AD4 AD2 If you cannot see the image above,…

A: Aggregate Demand  Aggregate demand refers to the entire amount of demand for all completed goods and…

Q: 6/In each of the following cases, either a recessionary or ińflationary gap exists. Assume that the…

A: GDP = Consumption + Investment + Government Spending + Net Exports Marginal Propensity to Consume is…

Q: Which of the following is an automatic stabilizer that moves the federal budget toward deficit…

A: Any portion of the government budget that compensates changes in aggregate demand is referred to as…

Q: If the economy is in an expansionary mode just coming out of a recession, in regards to aggregate…

A: If the economy is in expansionary mode, then the government spendings would have been high or the…

Q: J 7 What curve is meant to impacted by fiscal policy? What direction do policy makers hope to shift…

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

Q: The advantage of using contractionary fiscal policy to address a short-run inflationary gap, rather…

A: When the economy is in an inflationary gap, real GDP is larger than potential GDP and the price…

Q: hat is the 'Keynesian Fiscal Multiplier’ and things might decrease its magnitude? ve both the…

A: The initial rise in expenditure leads to multiple rise in the income level, such phenomenon is known…

Q: Which of these economic problems is not associated with the study of macroeconomics? a. How to…

A: Macroeconomics shows a bigger picture of how the entire economy works and takes into picture GDP,…

Q: The use of government purchases (G) as a fiscal policy tool can have an effect on long-run growth in…

A: Government purchase is also known as the government spending on goods and services. The federal’s,…

Q: Which of the following statements is not true? O A decrease in federal income tax rates is an…

A: The statement which is not true is - Option d - when aggregate expenditure exceed real GDP inventory…

Q: Suppose that Congress and President decide on lowering taxes and increasing government spending in…

A: Macroeconomics analyzes the economy as a whole. Several macroeconomic policies are discussed in…

Q: An expansionary fiscal policy shifts the aggregate demand curve O to the right and is used to close…

A: The expansionary fiscal policies will raise the AD in the economy by lowering the taxes and rising…

Q: QUESTION 20 Consider an economy that is producing an aggregate output of Y2 shown in the figure…

A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…

Q: Expansionary fiscal policy refers to (increases, decreases) in government spending or icreases,…

A: Expansionary fiscal policy is used to increase the aggregate demand in an economy, while…

Q: h of the following are arguments in favour of active stabilization policy by the government? Check…

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

Q: Which fiscal policy expects the economy to self-adjust? O balanced budget O counter-cyclical O…

A: Fiscal Policy is the policy in which taxes and government spending is used for influencing economic…

Q: Algonquin's equilibrium price level and real output? The initial equilibrium price level and real…

A: MPC = 0.33 Natural Unemployment rate = 4.5% Price level  (2010=100) Real GDP AD0 Real GDP AD1…

Q: Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to…

A: To revive any economy from the brink of recession there can two types of policies:- Expansionary…

Q: Which of the following would be classed as an expansionary fiscal policy? An increase in the money…

A: An expansionary fiscal policy is a policy from government to expand aggregate demand without any…

Q: When television commentators refer to "tax and spend" policy, they are referring to O fiscal policy.…

A: A fiscal policy is a policy used by the government to stabilize the economy with taxes and…

Q: Which statement is CORRECT? O A) Automatic stabilizers indicate deliberate action by policy makers.…

A: Answer: In the case of discretionary fiscal policy, the government takes deliberate action to either…

Q: Neutral fiscal policy involves: O Soff = T-G0 O None of the parts, fiscal policy involves i.a. to…

A: Neutral Fiscal policy is also called Balanced Budget. This implies that government has enough tax…

Q: When GDP and incomes are high the government collects more dollars in tax revenue. When they're low,…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand…

A: a) The increase in value of stock prices would increase the consumption and aggregate demand and…

Q: Which of the following is a fiscal policy action aimed at reducing unemployment? Decreasing…

A: The government will use expansionary fiscal policy in form of increased government spending and…

Q: When GDP and incomes are high, the government collects more dollars in tax revenue. When they're…

A: Here, it is given that government collects more tax revenue when there is high GDP and income, while…

Q: Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: SRAS PL PL AD2 AD REAL GDP Y,Y2 The Aggregate Demand Model shows an increase in Aggregate Demand or…

A: Here, according to the given graph, aggregate demand is increased that shifts the Aggregate demand…

Q: Explain the aspects of expansionary and contractionary fiscal policy. During which phases of the…

A: Fiscal policy refers to the policy opted by the government in order to maintain price stability in…

Q: In the Keynesian model, when government decreases its spending by $20 billion, and it decreases…

A: There have been decrease in government spending and decrease in taxes. So the net effect will depend…

Q: An advantage of automatic stabilizers over discretionary fiscal policy is that O automatic…

A: Correct : automatic stabilizers are not subject to the same time lags as discretionary fiscal policy…

Q: 5- In the Keynesian range of the AS curve, increases in taxes will raise unemployment- true 16- If…

A: Keynesian economist focuses on aggregate demand and aggregate supply, which according to him is the…

Q: According to Keynesian analysis, the adoption of an expansionary fiscal policy will result in: O an…

A: Fiscal policy is a policy that the government uses to influence the economy. It aims at certain…