The three common limitations of discretionary fiscal policy are information lag, decision lag, and execution lag. True False A Moving to another question will save this response.

Q: Fiscal policy determines the level of interest rates.True or False

A: Fiscal policy: It refers to the policy which is used by the government so that it can make…

Q: When there is a problem of a delay in terms of implementation of the fiscal policy, that would be…

A: Fiscal policy refers to the employment of presidency spending and tax policies to influence economic…

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: If the government is running a fiscal deficit, it can only finance it through monetization. true or…

A: To finance the deficit, the government borrows money from the central bank and repays it by selling…

Q: Categorize the scenarios as either a discretionary act or the result of automatic stabilizers. a. A…

A: A discretionary expenditure is a cost that a firm or family may live without if it is absolutely…

Q: Since the year 2000, the U.S. government has always been running a budget surplus. A. This statement…

A: The federal budget is used to establish financial priorities, such as social security, military, and…

Q: Discuss the difficulty in predicting the effects of discretionary fiscal policy.

A: Fiscal policy is the process through which a government modifies its spending and tax rates in order…

Q: As discussed in the class, discretionary policies are the actions the administration takes in order…

A: The macroeconomic policies that are formulated in the wake of the changes in the economy, by the…

Q: Determin if the statements are true or false 1. Government spending, and hence, U.S. debt, typically…

A: Since we answer slutions upto only 3 sub-parts, we will answer the first three. If you want to get…

Q: how discretionary fiscal policy fights recession and inflation

A: The fiscal policy of the government used as per the need of the government is discretionary fiscal…

Q: True or false.  Most of the federal expenditures are not at the year-to-year discretion of Congress…

A: When talking about government budget, government requires to maintain budget related to…

Q: grow and develop without depending extensively on aid. Realizing that Ghana has already undergone…

A: Fiscal policy refers to the use of tax policies and government spending tin order o influence…

Q: Identify and describe some practical difficulties of discretionary fiscal policy.

A: please find the answer below.

Q: Give a numerical example and illustrate the difference between complete crowding out, incomplete…

A: Answer - Thank you for submitting the questions but, we are authorized to solve one question at a…

Q: True/False  Unemployment benefits are an example of fiscal policy.

A: An unemployment benefit refers to a benefit provided to an unemployed person by the state in terms…

Q: Government spending in Robok is $90 billion, and its only tax is an income tax with a marginal tax…

A:

Q: Describe the following term in your own words. Balanced budget

A: Budget shows the total receipts(income) and total expenditure of the government in a fixed period of…

Q: There is a consumer who lives for two periods. His income is given by Y1 and Y2. He has access to…

A: Consumer alternative could be a field of Microeconomics that studies the connection between…

Q: Define what is 'automatic stabiliser' in fiscal policy, and provide 2 examples

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation under which the…

Q: Which of the following is/are examples of expansionar fiscal policy A) An increase in taxes B) An…

A: The fiscal policy is mainly concerned with the tax rates and the government spending, while monetary…

Q: Discuss two reasons why discretionary fiscal policy (expansionary & contractionary) may be…

A: Contractionary fiscal policy:- When the government either slashes expenditure or hikes taxes, it is…

Q: TRUE/FALSE According to the Laffer curve, increases in tax rates always result in less tax revenue.

A: Laffer curve shows graphically the relationship between tax rate and tax revenue.

Q: How much fiscal stimulus or restraint occurred between

A: Fiscal stimulus refers to the amount by which the structural deficit in a nation rises. It can also…

Q: Which of these statements about automatic stabilisers is true? a) They eliminate the fluctuations…

A: An economy is said to be operating free when there is no government that does not intervene in the…

Q: What are the two things Congress could manipulate to enact Discretionary Fiscal Policy?

A: Congress is the legislative branch of Federal Government.  Fiscal Policy refers to change in…

Q: T F Fiscal policy determines the level of interestrates.

A: Fiscal policy refers to the taxation and expenditure decisions of the government that influences a…

Q: Assuming a constant money supply, government expenditures can be financed by which of the following?…

A: An increase in government expenditure increases budget deficit, which the government needs to…

Q: Which of the following is an appropriate discretionary (active) fiscal policy if there is a…

A: We need expansionary fiscal policy to close the recessionary gap.

Q: Which of the following economic schools of thought promote the use of fiscal policies to stimulate…

A: Classicals believed that no government intervention is necessary and market adjusts itself.…

Q: Which of the following statements about state budget is wrong? a. Budget may be annual or biennial…

A: In an economy, government budget plays a significant impact on the overall growth and development of…

Q: If AD=$1,500, AS=$2,500, Consumer borrowing =$500, find the level of the budget deficit so that…

A:

Q: Calculate the value of total expenditure when the budgetary deficit is given to be as $12,000…

A: we know that the difference between the total expenditure and the total receives always give us the…

Q: Fiscal policy can be classified into which two groups

A: Fiscal policy alludes to the public authority activity to impact the market by making changes in tax…

Q: If the federal government has a budget surplus, then it is definitely the case that revenues are…

A: Government collects taxes in order to maintain public expenditure.

Q: N R FIRMS 80m 100m FINANCIAL SECTOR 50m 120m GOVER 220m

A: *Answer:  2.1.4) Injections are such variables that add to the circular flow of income.  Government…

Q: b. Discretionary spending accounts for approximately of the federal budget, whereas mandatory…

A: Discretionary spending refers to the government expenditure that is not pre-planned by the…

Q: Determine whether the following represent an example of discretionary fiscal policy or an automatic…

A: Automatic stabilizers and discretionary fiscal policies play an important role in controlling the…

Q: Find the size of the cyclically adjusted budget deficit. Find the initial equilibrium for prices (P)…

A: The cyclically adjusted budget is the budget that would be implemented if the economy were fully…

Q: Which of the following is NOT an undesirable side-effect of discretionary fiscal policy?      A)…

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

Q: discretionary

A: In an economy, government imposes taxes on the citizens to make different types of economic…

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.