Sketch a diagram of how sustained budget deficits cause low economic growth.

Q: Collaboration with Congress during the Clinton Administration allowed for an aggressive…

A: In economics, the quantity of a commodity that producers want to sell at various prices and the…

Q: When are larger deficits desirable?

A: Deficit occurs when the government’s expenditure is greater than its revenue.

Q: The current market rate of interest is 10 percent. At that rate of interest, businesses borrow $300…

A: The theory of Ricardian equivalence has been largely dismissed by Keynesian economists and ignored…

Q: Briefly explain how a budget deficit arises and what corresponding action is typically by taken by a…

A: Budget deficit arises when the expenditure of the government exceeds the revenue ie the government…

Q: Can government spending that causes crowding out be detrimental to long-run economic growth?…

A: Economic expansion is defined as an increase in the total output of an economic system. Economic…

Q: using macroeconomic issues, what are three ways national debt affect economic growth?

A: The production of the goods and services which is maintained on the sustainable basis is called the…

Q: what are the conventional and unconverntional ways to reduce a deficit and what are the related…

A: Budget deficit happens when the income/revenue of the government falls short of its expenses.

Q: What are some of the ways fiscal policy might encourage economic growth?

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: Illustrate the concept of Ricardian equivalence using the demand and supply of financial capital…

A: Ricardian equivalence: The theory says that the consumption of an individual or family’s rate of…

Q: The use of government spending and taxation to affect aggregate demand are examples of fiscal…

A: Aggregate demand is the measure of total goods demanded and services too in any particular economy.…

Q: Which of the following statements about government deficits is correct? a. Deficits should occur…

A: Deficit occurs when the government expenditure tends to be larger than the income of government.

Q: How does tax cuts encourage saving and investment

A: Tax reduce the personal disposable income of an individual which leads to reductions in savings and…

Q: What is meant by revenue deficit and what does it indicate

A: There are three main deficit of any government which are:- (1) Revenue deficit (2) Fiscal deficit…

Q: Under what condition would crowding out not inhibit long-run economic growth? Under what condition…

A: Contraction in economic activities related with the deficit financial spending is termed as…

Q: The following table shows government spending and tax revenue for a hypothetical economy over a…

A: A budget deficit occurs when the actual expenses of the government exceeds the planned expenses.

Q: Which of the following, regarding debt and growth, is false?    a. If there is no (nominal) GDP…

A: a-Central banks can support development by cutting loan costs, which (in principle) prompts simpler…

Q: Do I have this queshtion right I think its positive. I'm not sure if I'm correct.

A: Economic growth.From the given graph, if these countries have gross government debt is excess of…

Q: How does tax cuts encourage savings and investment

A: Since there is inverse relationship between the willingness to work and tax rate.

Q: Suppose that Antonio, an economist from a business school in Georgia, and Caroline, an economist…

A: The disagreement between these economists is most likely due to Difference of opinion.

Q: How does the two-good, two-country version of the Ricardian model differ from the two- country,…

A: The Ricardian model of international trade tries to elucidate the inequality in comparative…

Q: Explain how the government can use fiscal policy for capital formation and Technological Improvement…

A: The fiscal policy is used by the government in order to influence the economic activity and…

Q: Using a graph representing the market for loanable funds, show and explain what happens to interest…

A: The change in government budget from deficit to surplus will decrease the demand for loanable funds.…

Q: The effects of a budget deficit can be offset by: a. External financing b. Crowding out c. A…

A: In June 2012, economist Laura D'Andrea Tyson wrote: By itself, an increase in the deficit, either in…

Q: Explain how the government can use fiscal policy for capital formation and Technological Improvement…

A: Economic development: - Economic development is the process of improving the social and economical…

Q: Consider a closed economy. Household saving is $300, business saving is $400, government purchases…

A: The financial price of all finished product and services made within a rustic throughout a precise…

Q: How do we reduce the national debt and still stimulate business growth?

A: National debt: It refers to the amount which is owned by the government from its creditors. It is…

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: Is it a good policy for the government to create budget deficit?  Why and why not?

A: The government is creating a budget deficit in order to stimulate the aggregate demand. To boost the…

Q: Other things equal, when the government runs a large budget deficit, it _____ national saving and…

A: Budget deficit: A spending deficiency happens when costs surpass income and show a nation's monetary…

Q: What does the model predict will happen to the quantity of private investment as a result of…

A: According to the trend, when the government undergoes an aggressive deficit cutting plan, it means…

Q: Answer the question completely: 1. How can fiscal policy promote economic growth and development?

A: Economic growth, outlined as a rise in people's real financial gain, indicates that the quantitative…

Q: )Which of these methods of government deficit finance is MOST likely to crowd out private…

A: Government budget deficit: - Government budget deficit is the condition in which the government…

Q: Explain how the government can use fiscal policy for capital formation and Technological Improvement…

A: The governments use fiscal and monetary policies to achieve certain macroeconomic outcomes. Monetary…