rice level and output are affected in the short-run. b) Can the government use fiscal policy to offset the effec

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A: Aggregate Demand curve (AD) is the downward sloping curve which shows an inverse relationship…

Q: What are the major sources or categories of revenue and major expenditures?  How have revenues and…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: Which of the following illustrates the effectiveness lag? A.Policymakers implement contractionary…

A: Effectiveness lag can be understood as when the policy is implemented or any change in policy is…

Q: QUESTION 2 The pandemic of Covid-19 has signifigantly effect the world economy and suppose our…

A: Taxes has been one of the important factors in establishing a fiscal policy and making sure people…

Q: olicy"

A: Resource mobilization is the process of receiving resources from the resource provider with use of…

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

A:

Q: Describe the role of fiscal policy in the 20th century during the so-called US “golden age” period,…

A: The AD-AS model explains the Keynesian model and its effect on the price level and the quantity of…

Q: ontrast the effectiveness of fiscal policy in the BKM and AD-AS models.

A: The aggregate demand curve shows the inverse relationship between interest rate and the total…

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: Fiscal policy is the use of government tax and expenditure policy to influence the economy O True O…

A: Fiscal policy is used by government to influence aggregate demand and real GDP in the economy.

Q: Supply-side fiscal policy targets which of the following? A) Long-run Aggregate Supply B) Short-run…

A: Supply-side fiscal policy states that increasing the supply of goods pushes the economy of the…

Q: Right now many economies in the world are experiencing a downturn due to the Corona Virus. a) What…

A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only the…

Q: If the government were to increase income taxes, how would that affect output (RGDP) and the price…

A: Similarly, contractionary fiscal policy,  dampens the output level in the short run. It shifts the…

Q: Uganda has an unstable macroeconomic situation and the government has decided to increase its…

A: Hi! thanks for the question but as per the guidelines, we can answer up to three sub-parts at one…

Q: Fiscal Policy cannot stabilize the Economy if there is High Unemployment and High Inflation…

A: Contractionary policy will decrease aggregate demand and shift it to the left. This decreases real…

Q: Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

Q: The outbreak of COVID-19 pandemic in 2020-21 has had a significant impact on the Australian economy.…

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: Classical economists believed in raising the budget deficit to cure inflation. O True O False

A: The statement is false

Q: ich of the following statements are FALSE? (a) When the government prints money to buy…

A: Government spending is effective during the recessionary pressures. The recessionary pressures lead…

Q: If inflation becomes too high, the government can use fiscal policy to slow the economy down some…

A: An expansionary fiscal policy aims to increase the Aggregate demand by decreasing taxes and…

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

A: In the given model Aggregate Demand is increasing. In an Expansionary Fiscal Policy, AD increases…

Q: In which situation would it make the most sense to send stimulus checks as an exapansionary fiscal…

A: Answer: Correct option: b (Forced shut-downs of the economy due to a health pandemic lead to a…

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

A: Friedman's economic views evolved into monetarism, which challenged key aspects of Keynesian…

Q: Explain your decision making regarding government expenditure and how it changed based on the…

A: Fiscal policy is the utilization of government spending and tax collection to impact the economy.…

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: Explain , using the AD - AS model , government can use fiscal policy as a tool to recover from the…

A: In order to reduce the negative impact of the pandemic, the government would need to use the…

Q: Draw an AS-AD model of an economy dealing with an inflationary gap. What is one fiscal policy that…

A: Aggregate demand refers to the total expenditure incurred by all the sectors of an economy during a…

Q: compare monetary and fiscal policy in classical and keynesian model. Be precise

A: Fiscal policy affects aggregate demand through changes in government spending and tax assessment.…

Q: What is fiscal​ imbalance? Fiscal imbalance is the​ _______ value of the​ government's commitments…

A: What is the fiscal​ imbalance? Fiscal imbalance refers to a situation where all of the government's…

Q: Consider a potential fiscal policy used to curb a recession. How could a consumer and business…

A: Fiscal policy refers to the policy of the government to control the money supply in the economy to…

Q: If the economy is in a recessionary period how, specifically, might the government use their three…

A: Recession is defined as a period of economic slow down. Recession is characterized by consequent…

Q: In an effort to boost output, the government passes a large fiscal stimulus that raises government…

A: The shape of AS curve changes according to the time. So in the very short run, it is parallel to the…

Q: Suppose an economy is hit by a recession and people’s income fall. Show graphically using AD-AS…

A: A recession is said to occur when there is a decline in economic activity for more than six months…

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

A: Fiscal policy includes the regulation of an economy by a government through bringing changes in…

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

A: The government can use fiscal policy to help improve the state of the economy. The policy can be…

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

A: The government uses two types of macroeconomics policy which are fiscal and monetary policy. The…

Q: Country D experiences a recession due to a decrease in consumer confidence. There are two…

A: Decline in consumers confidence results in decline in demand for consumer goods, thus there would be…

Q: Identify one fiscal policy action that could counter the increase in investments. Explain how this…

A: Fiscal policies are actions taken by the government to stabilize the economy. The policies include…

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

A: Fiscal policy refers to the process by which the government adjusts its revenue, expenditure, and…

Q: Fiscal policCy is purposet movements in designed to direct an economy.

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

Q: Draw and AS-AD model of an economy suffering from unemployment. What is one fiscal policy that can…

A: The aggregate demand curve shows the negative relationship between the price level and the total…

Q: Hi! Can you help me understand why monetary and fiscal policies are important? macroeconomic tools…

A: 1. Why monetary and fiscal policies are important? 2. Macroeconomic tools used to stimulate…

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.