What do you understand from the sustainability problem of the fiscal stimulus packages implemented by the state in order to eliminate a recession in the economy? Please explain.

Q: Explain the concept of Fiscal Policy

A: Definition of Fiscal Policy: Fiscal policy is a policy of government to control the economy through…

Q: discuss the economic implications of  Joe Biden’s fiscal stimulus for the US economy and the…

A: The economies around the globe are focused on their development and growth in various areas. The…

Q: Describe the difficulties that can arise in implementing fiscal policy.??

A: Fiscal policy is known to be the policy in which the government uses three instruments which include…

Q: What would happen if contractionary fiscal policy were implemented during an economic boom but,due…

A: The fiscal policy is a policy of the government which includes instruments namely taxes, government…

Q: Differentiate between the following terms: a. a budget deficit.  b. the government debt.  c. a…

A: a. When the expenditure of individuals, Government, or company surpass the revenue then it is called…

Q: TRUE/FALSE Spending by local governments to stimulate or slow down their local economies is an…

A: The Fiscal Policy (FP) is a tool of government to adjust the economy. The Monetary Policy is a tool…

Q: Give three yes and three no arguments. Why Are tax cuts good for America?

A: Any tax cut would decrease the revenue for government and increase the income of people with tax…

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

A: please find the answer below.

Q: Discuss one likely affect of fiscal policy financed via the accumulation of additional government…

A: Fiscal policy is related to government spending and use of taxes as well as subsidies for the…

Q: Explain the Expansionary and Contactionary Fiscal Policy with the help of diagram.

A: Fiscal policy is used by the central government of the country or finance ministry of the country to…

Q: Classify each statement based on the type of fiscal policy to which it refers. Expansionary fiscal…

A: The fiscal policy action that is used by the government to increase the aggregate demand is known as…

Q: Is it possible for a country to have a headline fiscal deficit and a primary fiscal surplus? Explain…

A: In an economy, headline fiscal deficit is the government over expenditure when receipts are less…

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: Propose the Fiscal Policy needed to fix this economy.

A: A) Cost push inflation (Graph Type) In graph we can there is an increment in the price level because…

Q: How does the Expansionary and Contractionary Fiscal Policy affect the Inflation, GDP, Economic…

A: The government uses fiscal policy to increase or decrease the aggregate output. It can increase or…

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: Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.

A: Fiscal policy is the use of government spending and taxation to adjust the economy. It is a method…

Q: Why is identifying potential opportunities, and managing within predictable limits for fiscal policy…

A: Fiscal policy is an important tool for dealing with the economy on account of its capacity to…

Q: Derive and discuss the three major fiscal policy multipliers

A: Assuming an open economy where output is exactly equal to the sum of consumption expenditure,…

Q: Define the term fiscal policies and explain the government's government role in developing fiscal…

A: Fiscal policy is defined as the decision taken by the government to control the level of its…

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

A: A budget deficit occurs when a government spends more in a given year than it collects in revenues,…

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: Explain the 3 types of lag we should be concerned about when implementing fiscal policy?

A: When a policy is implemented there are certain lags due to the difference in the period when the…

Q: Describe the supply-side effects of a fiscal stimulus and explain how a tax cut will influence…

A: The supply-side effects of fiscal-stimulus: Fiscal-stimulus can be given in the form of higher…

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: Explain the 3 features of ideal fiscal policy?

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

Q: If a government runs a budget deficit of $10billion dollars each year for ten years, then a surplus…

A: The deficit accumulated after 10 years of budget deficit will be: budget deficit=10×10=$100 billion…

Q: Explain how fiscal policy can be implemented if an economy is in the downswing of a business cycle.

A: Fiscal policy is tools available to the central government to mitigate the economic consequence by…

Q: Identify the effects of fiscal policy on the economy

A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…

Q: Why is it important for a government to stimulate itseconomy through an active fiscal policy?

A: A fiscal policy is the policy which a government uses to influence the output and the employment of…

Q: Evaluate the effectiveness of fiscal policy as a tool to reduce unemployment.

A: Fiscal policy is a policy used by the government in which it influences the level of government…

Q: Which of the following is an expansionary fiscal policy? increase in taxes only both increase in…

A: Fiscal policy is the term used to describe how the government uses spending and taxation to affect…

Q: Explain how the two main tools of fiscal policy can be applied by a government in the…

A: "Government make use of fiscal policy in order to stabilize a country's economy. Government while…

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: Define fiscal policy and explain the role of income taxes and government spending as fiscal policy…

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

Q: Why will direct taxes increase faster than per capita income?

A: In an economy, the government imposes taxes on the income of the people in different ways such as…

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

A: Crowding out is a situation in which an increase in government spending or investment causes a drop…