What are some fiscal policy measures that can be enacted by the legislative and executive branches of the Federal Government in order to deal with inflationary/recessionary gaps?

Q: Would you predict that government expenditures would be higher or lower if taxes (or user charges)…

A: The government expenditure is made out of the government revenue an when the increase in government…

Q: How budget deficits and national debt are defined?

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…

Q: Describe fiscal policy. How can it affect the money supply, interest rates, and the expansion and…

A: Fiscal policy refers to the method of government spending and tax policies to take a control over…

Q: Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal…

A: 1. The government is initially in the gross national debt of $2.5 trillion and the new deficit is…

Q: In what ways do future generations benefit from this generation’s deficit spending?  Cite three…

A: Public deficit: It refers to the situation in which government expenditure exceeds its revenue…

Q: Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $10 billion…

A: Given  That government has no debt and a balanced budget but suddenly it decides to spend $10…

Q: Why might economists be quite concerned if the annual interest payments on the U.S. public debt…

A: If the annual interest payments on debt increased sharply, government spending on debt will increase…

Q: What is the difference between the US government debt and government deficits? Are they sustainable?…

A: In the United States, government, that us Congress,makes various rules and regulations, according to…

Q: What are some the long run risks of large deficits and significant increases in the federal debt as…

A: When expenses outnumber revenues, imports outnumber exports, or liabilities outnumber assets, an…

Q: Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $10 billion…

A: The federal government's budget is one of the most divisive subjects in American politics today. The…

Q: Suppose that in 2016 the federal government spent $680 billion and collected $480 billion in taxes.…

A: The government budget gives the summary of the expenditure and revenues of the government. The…

Q: Suppose that in 2016 the federal government spent $730 billion and collected $480 billion in taxes…

A:

Q: What is the difference between the federal budget deficit and the national debt?   a. The budget…

A: The budget deficit occurs when the current expenses exceed the revenue of an economy.  This may…

Q: When the government spends more than it collects in taxes, it can do this by? a. financing the…

A: Government spending is the sum of government purchases and transfer payments. Government spending…

Q: Try the following exercises to better understand how the national debt is related to the…

A: GDP refers to the total value of finished goods and services that produced within the economic…

Q: Which of the following is a true statement in reference to the national debt? a. It is almost…

A: 4. The answer is - e. As a percentage of GDP, it has steadily grown since World War II.

Q: What is the difference between your running a budget deficit and adding to your own personal debt…

A: The budget deficit occurs when the spending outpaces the income level or revenue. The debt is…

Q: 4. In the twentieth century, fluctuations in real GDP were Group of answer choices -less severe…

A: In the twentieth century, fluctuations in real GDP were: less severe during the last 50 years than…

Q: What's the difference between the debt and a deficit? Expansionary fiscal policy involves increasing…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Given the incentive of elected political officials to spend and their reluctance to tax, two-thirds…

A: According to the statement, the elected political candidates reluctance is to spend on the tax.…

Q: The table shows the tax revenues and the outlays of a nation at each level of real GDP. What is…

A: Tax revenue is the earnings that authorities receive from taxes. The main element of state earnings…

Q: Which of the following are consistent with Expansionary Fiscal Policy Surplus Increase Government…

A: Fiscal policy is the use of government spending and tax policy to influence the path of the economy…

Q: Summarize MMT in one sentence.

A: MMT means Modern monetary or money theory.

Q: ist the 3 major economic goals of fiscal policy.   Who is responsible for fiscal policy?

A: Since you have multiple questions, I would be answering the first two. If you want any specific…

Q: Are large federal deficits and a growing federal debt sustainable? What can be learned from the…

A: Federal debt: It means the amount of money that the federal government has borrowed and not yet paid…

Q: Aside from the few years during Clinton's administration, what is the state of the national debt?…

A: In the United States, government has changed based on electoral system due to which different…

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: Try the following exercises to better understand how the national debt is related to the…

A: When government expenditure upon development projects (roads, railway, port, bridges, and many…

Q: What are the three general options available to the U.S. to begin to reduce the relative size of our…

A: National debt occurs when US government is spending more than it is able to earn. It is the level of…

Q: Why might economists be quite concerned if the annual interest payments on the debt sharply…

A: The standard measure of value-added produced during a certain time by manufacturing goods and…

Q: Explain the relationship between the effectiveness of monetary policy and the interest elasticity of…

A: Interest elasticity of money demand shows the change in Money demanded due to change in interest…

Q: Complete the following sentence. As it relates to fiscal policy, a budget deficit exists when:Choose…

A: Fiscal policy measures the effectiveness of government budgets in an economy. This includes…

Q: If you voted for your committees to increase overall spending under your jurisdiction, resulting in…

A: National debt in year N = National debt in year (N - 1) + Budget deficit in year N (- Budget surplus…

Q: Explain how a budget deficit arises and what actions governments must take in this circumstance and…

A: A government budget is a paper prepared by the government and/or other political body that presents…

Q: Suppose the media report that the federal deficit this year is $200 billion. The national debt was…

A: To find out the real deficit, we discount the percentage increase in price from the Nominal Deficit.

Q: In case the government is experiencing deficit in its budget, it resorts to borrowing to close the…

A: The budget deficit is an excess of government (G) expenditure over G revenues. To close the deficit,…

Q: Explain the difference between the budget deficit and the national debt. If the deficit gets turned…

A: We need to answer, Difference between the budget deficit and the national debt. If the deficit gets…

Q: Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal…

A: New level of gross national debt can be calculated as follows: Thus, the new level of national debt…

Q: Suppose that in 2012 the government collected $320 billion in revenue and spent $380 billion, while…

A: Additional deficit on 2012 =$320- $380= -$60 billion