This course is designed to provide an understanding of market economies and the fluctuations they are subject to.  With this in mind, please answer the questions that follow.   a)  Assume the economy is in a recession.  Discuss how the government could implement fiscal policy to deal with the recession and the steps by which fiscal policy moves the economy out of the recession (Explain fully).  b) Explain how expansionary fiscal policy in the U.S. would affect the economies of other countries.

Q: Explain how the fiscal policy tools used by the federal government should work in terms of fighting…

A: There are two tools of fiscal policy of any country. First is expenditure and second is taxes.…

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: 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: Assume the Philippines government adopted fiscal policy measures to reduce the severety of typhoon…

A: Typhoon Haiyan, also known as Super Typhoon Yolanda in the Philippines, was one of the most intense…

Q: As we emerge from the pandemic, your friends are concerned with the rising prices they're…

A: Introduction  Fiscal policy has known as budgetary instrument of government policy. It influences…

Q: Which of the following is true according to mainstream economics? If a balanced budget amendment to…

A: Many prominent economists do not believe that a balanced budget is necessary to address the US…

Q: )Which of the following are many managers concerned about as a result of increased government…

A: When the authorities tend to play an important role through providing more facilities is known as an…

Q: Which of the following statements about how fiscal policy should most appropriately be used in a…

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

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: 23)Which of the following is classified as Fiscal Policy? Select one: a. The federal government…

A: 23.Answer is (a) Tax cut is an example of fiscal policy.To decrease air pollution,federal government…

Q: How do the instances when expansionary fiscal policy should be used compare with those for…

A: The use of government spending and tax policies to impact economic conditions, particularly…

Q: When the government deliberately alters its level of spending and/or taxes in order to achieve…

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

Q: Which of the following scenarios represent expansionary fiscal policies from both a supply…

A: Economic growth is an increase in the production of goods and services in an economy. Increases in…

Q: During a recession, if counter-cyclical fiscal policy were implemented we would expect the…

A: Fiscal policy refers to changes in government spending and taxes.

Q: Which of the following would be classified as fiscal policy?  The federal government passes tax cuts…

A: Answer - Need to find- Which of the following would be classified as fiscal policy  Given in the…

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: Which of the following is true according to mainstream economics? If a balanced budget amendment to…

A: Many prominent economists do not believe that a balanced budget is necessary to address the US…

Q: Fiscal Policy) Define fiscal policy. Determine whether each of the following, other factors held…

A: Fiscal policy may be a government measure to stabilize the economy, specifically by manipulating the…

Q: Describe some fiscal policies that governments are presently using to counter the impact of…

A: The fiscal policy is used by the government or the finance ministry of the country to regulate the…

Q: For the last 50 years or so, republicans and democrats at the national level have each favored…

A: The impact of a tax cut, Increase spending, Higher economic growth, Government borrowing, government…

Q: Which of the following is a TRUE statement about arguments for and against requiring a balanced…

A: The federal budget is the government's forecast for income and expenditures for each fiscal year.The…

Q: What is Fiscal Administration as you have understood in this module.

A: Public Fiscal Administration, by and large, alludes to the cycle/is associated with the income age,…

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

A: Milton Friedman was an American economist and statistician who believed strongly in free market…

Q: Describe the roles of government bodies that determine fiscal policy. Explain fiscal policies’…

A: The role of government bodies that determine fiscal policy are as follows: The government fiscal…

Q: Which of the following is not an example of fiscal policy? Group of answer choices   All of these…

A: The tool that government use in order to balance the economy is called fiscal policy tool.

Q: Supply-side fiscal policy initiatives include the following items EXCEPT: Group of answer choices…

A: Fiscal Policy refers to the policies which adjust the government spendings and revenue from taxes by…

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 role of the Council Economic Advisers (CEA) as it relates to the effectiveness of the…

A: The CEA was settled under the Employment Act,1946. It was established to provide the president with…

Q: Explain the instuments of Fiscal policy.

A: Monetary and fiscal policy are the 2 most important type of policies in the economy. Monetary policy…

Q: Discuss how governments can use fiscal policy to address TWO costs of unemployment.

A: Answer: The TWO costs of unemployment are given below: (1). Loss of output or goods and services:…

Q: Q.1. A budget deficit occurs when:  (a) there is an increase in taxation. (b) government spends less…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The government has many tools at its disposal to help create stability for an economy. Explain the…

A: The use of government spending and taxation for influencing the economy is known as fiscal policy.…

Q: Which of the following is an example of active fiscal policy? Government expenditures rise during a…

A: When the president and congress willingly attempt to change the course of economy through changes in…

Q: What is fiscal policy? When should fiscal policy be used? Are there any negatives associated with…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Which of the following is an example of active fiscal policy? a.Government expenditures rise during…

A: Fiscal policy refers to deviations in government spending and taxes, which are proposed to achieve…

Q: What do you understand from the sustainability problem of the fiscal stimulus packages implemented…

A: When the economy is facing a recession, the government can stimulate the economy by using…

Q: Which pairs of operations BEST  fit with fiscal policy?   A.) Discount rate and Government…

A: Fiscal policy refers to the actions adopted by the government, involving changes in taxation and/or…

Q: 10.  Legislative lags associated with fiscal policy are due to all of the following, except:…

A: fiscal policy is the use of government revenue collection and expenditure to influence a country's…

Q: Gokhale and Smetters (2003) found that the long-run fiscal imbalance in the U.S. government budget…

A: Gokhale and smettersbth economist of America researched on fiscal imbalance of America.In 2003,they…

Q: onary Fiscal Policies while others are in favor of Expansionary Monetary Policies. Prepare a…

A: Monetary policy involves changing of the interest rate and influencing the supply of money.Fiscal…

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 statements regarding fiscal policy is correct? Select one: a. Expansionary…

A: Recession is a time period in the economy when there is a continuous fall in the output.

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.