What are the government’s fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government? A person who thinks the public sector is too large? How does the “ratchet effect” affect anti-inflationary fiscal policy?

Q: Q11. For various reasons, fiscal policy changes automatically when output and employment fluctuate.…

A: Recession: - it is an economic condition where the overall economic activity declines in an economy.

Q: If government policy makers were worried about the inflationary potential of the economy, which of…

A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…

Q: In case of DEFLATION, mention that which particular type of fiscal policy will be used and why and…

A: Deflation occurs when the price level falls in the economy. It is usually when people prefer to hold…

Q: effectiveness

A: Fiscal policy is the use of government spending and tax policies in order to influence economic…

Q: Assume the economy is operating below full employment. Which of the following policies will increase…

A: National debt will increase when there is a budget deficit.  A budget deficit occurs when government…

Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

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

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: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

A: Expansionary monetary policy is used to boost up the economic growth. It aims to increase the…

Q: If the economy is in an expansionary mode just coming out of a recession, in regards to aggregate…

A: If the economy is in expansionary mode, then the government spendings would have been high or the…

Q: What are the three fiscal policy tools and how would each be used to counter a contractionary gap?

A: Fiscal policy tools are the revenue and expenditure tools of the government undertaken to accomplish…

Q: What are some fiscal policy measures that can be enacted by the legislative and executive branches…

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

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: Right now many economies in the world are experiencing a downturn due to the Corona Virus. a) What…

A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only the…

Q: DYNAMIC TAX SCORING—WHAT IS IT, AND WHO WANTS IT? Go to www.google.com and search for information on…

A: Dynamic scoring is an apparatus to give individuals from Congress the data they have to assess the…

Q: Explain how time lags present an additional problem in fiscal policy.

A: Fiscal policy is policy of expenditure and taxes. Fiscal policy is operated by the government. Lags…

Q: In which situation would it make the most sense to send stimulus checks as an exapansionary fiscal…

A: Answer: Correct option: b (Forced shut-downs of the economy due to a health pandemic lead to a…

Q: Why the aggregate supply (AS) curve is relatively flat within the low ranges of aggregate output and…

A: Aggregate supply refers to the total value of goods and services available for purchase at a…

Q: If inflation is a major issue in the economy, what would be the correct fiscal policy response from…

A: Fiscal policy refers to changes or adjustments in the expenditure(spending) and/or the taxes so as…

Q: Which is considered expansionary fiscal policy? a)a tax increase for wealthy individuals b)an…

A: Fiscal Policy is  the use of tax policy and the government expenditure that can influence the…

Q: For questions 34-39 choose whether each is an example of: fiscal policy a. discretionary b.…

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

Q: and

A: Supply-side economics is theory postulating that tax cuts for the wealthy result in increased…

Q: If the government announces that it has increased the corporate tax rate from 25% to 35% and the…

A: Taxation is an instrument of the fiscal policy.

Q: when can we say that fiscal policy succeeded and where/ when can we say that fiscal policy has…

A: Fiscal policy refers to the actions used by governments to stabilize the economy, particularly…

Q: What is fiscal policy and what is the crowding out effect of expansionary fiscal policy?

A: Government use various policy instruments in the economy to properly balance and maintain it and…

Q: a. A recession. b. A stock market collapse that hurts consumer and business confidence. c.…

A: * ANSWER :-  (a)

Q: Algonquin's equilibrium price level and real output? The initial equilibrium price level and real…

A: MPC = 0.33 Natural Unemployment rate = 4.5% Price level  (2010=100) Real GDP AD0 Real GDP AD1…

Q: Some Economists argue that Fiscal policy have no effects in the long run on employment and aggregate…

A: There are various responsibilities of government and central bank towards the economy. The overall…

Q: Consider a potential fiscal policy used to curb a recession. How could a consumer and business…

A: Fiscal policy refers to the policy of the government to control the money supply in the economy to…

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 how expansionary fiscal policy can fail during a recession.

A: Fiscal policy refers to the policy taken by the government to influence the economy of a nation. The…

Q: By using graphs, show and explain the effects of an expansionary fiscal policy on the goods market…

A: Expansionary fiscal policy is defined as how the government initiates with spending more and even…

Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

A: Expansionary Policy: Expansionary monetary arrangement incorporates tax breaks, move installments,…

Q: Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy,…

A: Contractionary fiscal policy: Contractionary fiscal policy refers that when the government decreases…

Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…

A: The government uses two types of macroeconomics policy which are fiscal and monetary policy. The…

Q: What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How…

A: Answer:- Suррly-side  eсоnоmiсs  is  а  mасrоeсоnоmiс  theоry  whiсh  аrgues  thаt  eсоnоmiс  grоwth…

Q: Identify one fiscal policy action that could counter the increase in investments. Explain how this…

A: Fiscal policies are actions taken by the government to stabilize the economy. The policies include…

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 should be done to combat inflation or an economy that is growing too quickly using fiscal…

A: Answer: When an economy is experiencing inflation or growing too quickly then the contractionary…

Q: Explains in detail fiscal policy, its role, and its effects on short-term and long-term economic…

A: Fiscal Policy: The Fiscal Policy is the revenue and expenditure policy of the government to…

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: 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…

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.