Suppose you observed that, by-and-large, in times of economic recessions, China mainly adopts fiscal policies, while the United States mainly utilizes monetary policies. Explain and illustrate why these policies are effective in the respective economies. Please illustrate with graphs
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Suppose you observed that, by-and-large, in times of economic recessions, China mainly adopts fiscal policies, while the United States mainly utilizes
Explain and illustrate why these policies are effective in the respective economies.
Please illustrate with graphs
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- Imagine an economy in which Ricardian equivalence holds. This economy has a budget deficit of 50, a trade deficit of 20, private savings of 130, and investment of 100. If the budget deficit rises to 70, how are the other terms in the national saving and investment identity affected?Explain how a shift from a government budget deficit to a budget surplus might affect the exchange rate.2) As an economist, identify and justify economic and fiscal policy measures that should be taken by the government of Oman to combat inflation and employment with the aim of reviving the economic condition of the country based on the following: a) Expansionary fiscal policy b) Contractionary fiscal policy c) Expansionary monetary policy d) Contractionary monetary policy
- 1. What are lags and why are they important when designing fiscal and monetary policies? (Make sure to contrast the differences in lags between monetary and fiscal policies). 2. Is the long-term scorecard of monetary and fiscal policies in the US more of a learning curve with significant successes or an example of poor government efforts at economic stabilization?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.The US government has recently announced and started to implement a large-scale fiscal expansion to mitigate the negative effects of the coronavirus pandemic and reboot the US economy. The Biden administration argued that this fiscal stimulus policy can rapidly accelerate the economic recovery without triggering high levels of inflation. Suppose the US fiscal stimulus can increase the US aggregate output level. possible effect of this fiscal policy on output and on the trade balance of European countries. And which graph can I use
- 1. Explain by using a curve the effect of a decrease in the minimum reserve requirement on the balance of the money market 2. Explain by using a curve the effect of an increase in people's real wages on the labor market. 3. Explain with examples of the application of what is meant by the expansionary fiscal policy used by the government to control the country's economy16. Which of the following statements is (are) correct? I. If the current inflation rate is positive, the inflation-adjusted government budget deficit will be smaller than the nominal government budget deficit.II. Under the capital budgeting, if the Government pays off its debt by selling an infrastructure it owns, it will not affect the government budget deficit. Answer: ________a) None of the above.b) I only.c) II only.d) Both I and II.7 - If the government announces that it has increased the corporate tax rate from 25% to 35% and the income tax rate from 20% to 30%, what kind of policy will it follow?A) contractionary fiscal policyB) Supply-side policyC) contractionary monetary policyD) Expansionary monetary policyE) Expansionary fiscal policy
- 13. Suppose that two countries differ on in the size of their MPC, where the MPC is high in country A and low in country B. Draw IS/LM and AD/AS curves for each country. In which country will monetary policy be most effective at changing income? Fiscal policy?E1 Suppose the Central Bank of Bothnia buys Treasury Bonds. What will be the impact on the price level and real GDP in the country of Bothnia? Would the purchase of treasury bonds be considered expansionary or contractionary policy AND would this be fiscal or monetary policy?6. A reduction in government expenditure or an increase in taxes is defined as: expansionary monetary policy. contractionary fiscal policy. expansionary fiscal policy. contractionary monetary policy.