Suppose the economy goes into a recession, and there are no changes the Federal Government’s tax laws or spending policies. We should expect: Group of answer choices the Federal deficit to grow larger the Federal deficit to remain unchanged the Federal deficit to become smaller the Federal deficit could either grow larger or become smaller, we can’t tell

Q: According to Bernanke’s policy guide,   Bernanke’s policy guide: 1/4 point reduction in long-term…

A: Fiscal policy is described in macroeconomics as a set of policies implemented by a government to…

Q: When an economy is already at full employment, what is the outcome of expansionary fiscal policies…

A: The fiscal policy is an automatic stabilizing policy in which the government either use it spending…

Q: Q6. How does fiscal policy affect the economy?

A: Answer: Fiscal policy: fiscal policy refers to the policy of government in which the government…

Q: According to the traditional view on government debt, a tax cut without a cut in government…

A: The governments use fiscal and monetary policies to achieve certain economic goals. The fiscal…

Q: Fiscal policy nowadays are focused on eliminating GDP gap  True  False

A: This statement is true.

Q: If income tax rates are increased in an attempt to balance the federal budget, we should expect to…

A: Income tax is tax on individual's income. The tax are levied in order to finance various project of…

Q: The graph below depicts an economy where an increase in aggregate demand has caused inflation.…

A: The change in the aggregate demand brings about the change in the output and price level. The change…

Q: Suppose the economy goes into a recession, and there are no changes the Federal Government’s tax…

A: A recession is a temporary period of economic decline which leads to a fall in GDP for two…

Q: When the Federal Reserve's Open Market Committee raises the Fed Funds rate they are attempting to…

A: Monetary policy: - it is a tool of government or central bank of a country in which they control…

Q: What does a declining national debt indicate? )The government is receiving more money in taxes than…

A: The national debt is the total of all liabilities owed by a country's government. The financial…

Q: Presidential candidate trump promised in mid 2016 that if he became President, he would never have…

A: A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country.…

Q: Analyse the action that government can take to assist the economy during a recession

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

Q: Typical goals for fiscal policy are    A. high employment and price stability.  B. high prices for…

A: Fiscal policy: These are the policy measures that are often being introduced by governments around…

Q: Suppose that the economy is slumping into recession and needs a fiscal-policy boost. Voters,…

A: Fiscal Policy deals with government spending and changes in tax rates where as monetary policy…

Q: Suppose the US Federal Government decides to engage in deficit spending whereby it increases its…

A: B) The price level increases above its initial level in short-run and further increases over the…

Q: Briefly discuss the effects of time lags in relation to fiscal policy, including: a comparison to…

A: ‘Fiscal policy’ refers to the use of ‘government revenue collection’ & expenditure to influence…

Q: What is expansionary fiscal policy? What is contractionary fiscal policy? Does expansionary fiscal…

A: In Keynesian macroeconomic theory, aggregate demand plays a very major role in stabilizing the…

Q: How will a contractionary fiscal policy affect a budget deficit? A.) Debts will…

A: Budget deficit refers to the amount of expenditure of a government that surpasses/exceeds the total…

Q: Classify each statement based on the type of fiscal policy to which it refers. Expansionary fiscal…

A: The fiscal policy action that is used by the government to increase the aggregate demand is known as…

Q: explain why the government deficit rises as the economy contracts and why the government deficit…

A: The government budget refers to a fiscal or financial statement that includes all the receipts (or…

Q: If net taxes fall by $80 billion, we would expect  the government deficit to fall by $80 billion.…

A: Taxation policy effects the level of savings of the households. Decrease in taxation will stimulate…

Q: The reason why fiscal policy should be in tune with monetary policy when the economy is in the…

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…

Q: Fill in the blanks : During [A Recession / Periods of Inflation], Congress could [Raise / Cut] taxes…

A: The fiscal and monetary policies are used by the governments to achieve certain economic goals. They…

Q: Which of the following is not true of deficits?   Supply-side policies contribute to budget…

A: Answer: Deficits: deficit refers to the difference between total spending and total revenue of the…

Q: In mid-2001, the Bush administration won congressional approval for lower income tax rates. One…

A: Supply-side policies are based on the concept that tax cuts for producers and providers of commodity…

Q: Describe the major differences in Republicans and Democrats plans on how they plan to create new…

A: Republican-style economic regulation The Republican Party is known for being pro-business and…

Q: Which of the following might increase the government budget deficit?     contractionary fiscal…

A: Government can have balanced budget, budget deficit or budget surplus. Government imposes tax to…

Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…

A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…

Q: Should the government fight recessions with spending hikes rather than tax cuts ? Explain

A: Government spending and tax reductions have different multiplying effects on the economy.

Q: If households and firms are pessimistic about the economy and very reluctant to increase investment…

A: When the zero interest rate policy does not make economy to move out of recession, the expansionary…

Q: A recent New York Times article stated: "Recent debates in the House considered tax cuts and tax…

A: The fiscal policy used the tools such as government spending and taxes to ensure that there is…

Q: if the government budget deficit equals $240 billion and the money supply increases by $100 billion,…

A: The budget deficit is an excess of government spending over its revenue. To meet the deficit, the…

Q: How can a budget deficit be reduced?   Group of answer choices   Decreasing government spending…

A: Ans. A. Decreasing government spending and/or increasing taxes A budget deficit is a situation when…

Q: 1.The fact that it takes time for government officials to recognize an economic problem in is one…

A:

Q: "If I am elected I will reduce the deficit" -every politician in history Which of the following best…

A: Deficit is the gap between spending and earning. A government facing a fiscal deficit means it has…

Q: Fiscal Policy) Was fiscal policy effective when the U.S. economy was experiencing stagflation during…

A: Fiscal policy is the policy used by government to stabilize the economy in the business cycle. The…

Q: What kind of fiscal policy will you use to fight against inflation. Explain it briefly.

A: Fiscal policy refers to changes in the federal government purchases and taxes, which are intended to…

Q: What is the importance of fiscal policy during times of economic recession?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Expansionary fiscal policy increases the government budget deficit. True, False, or Uncertain?…

A: Fiscal policies are the policies that are managed by the government with the aim of influencing…

Q: Why do you think multiplier is equal to zero and fiscal policy becomes less effective when we have…

A: GDP is the sum of all the expenditures in the economy. The following are the components of GDP:…