What is the importance of fiscal policy during times of economic recession?

Q: Distinguish between automatic fiscal policy and discretionary fiscal policy. What type of fiscal…

A: Fiscal policy refers to the government policy regarding tax and government spending which stabilizes…

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: What is the meaning and definitions of fiscal policy?

A: Fiscal policy is implemented by the government of a country. Money supply refers to the total volume…

Q: Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How…

A: Fiscal Policy:Fiscal policy is the tool of government through which it maintains the economy of a…

Q: Why do you think that expansionary fiscal policy can fail during a recession?

A: Recession is a situation in the economy, when there is general decline in the economic activity. For…

Q: Council Economic Advisers (CEA)

A: The Council Economic Advisers[CEA] consist of three members. The Chairperson, who is appointed by…

Q: What is expansionary fiscal policy? What is contractionary fiscal policy? Does expansionary fiscal…

A: In Keynesian macroeconomic theory, aggregate demand plays a very major role in stabilizing the…

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: 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: 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: Which fiscal policy would make a budget surplus smaller or a budget deficit larger? lower government…

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

Q: What are the reasons of fiscal policy not being effective in an economy according to classical…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: when is the most appropriate time economically speaking for the federal budget be in a deficit?

A: A budget deficit is a situation when government spending exceeds the government's total income. 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: 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: How did John Maynard Keynes economic theory influence the 20th Century fiscal policy?

A: Fiscal policy: - it is a tool of the government of a country in which the government adjusts its…

Q: Summarize MMT in one sentence.

A: MMT means Modern monetary or money theory.

Q: Discuss the two (2) main tools that a government can use to implement fiscal policy.

A: The term 'fiscal' relates to the government's budget and signifies 'budget.' Fiscal policy is the…

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 do critics charge that fiscal policy has a “big-government bias”?

A: Answer-Fiscal policy is the notion that government should actively stimulate the economy in bad…

Q: Our federal government establishes a budget that determines what programs and services can be…

A: Answer- Need to find- Our federal government establishes a budget that determines what programs and…

Q: If the president and parliament agree on a policy to reduce the budget deficit by increasing taxes…

A: If the government deicides to adopt a contractionary fiscal policy by increasing the taxes,…

Q: The reason why fiscal policy should be in tune with monetary policy when the economy is in the…

A: Hey, thank you for the question. Since there are multiple questions posted, we will answer first…

Q: Explain why implementation lag for fiscal policy is longer than monetary policy.

A: Fiscal Policy Monetary Policy The fiscal policy is the use of government revenue (taxes or tax…

Q: What are the primary goals of expansionary and contractionary fiscal policies and their effects on…

A: Expansionary fiscal policy happens when the government decreases the tax rate or raises its…

Q: What is classes as an expansionary fiscal policy?

A: Fiscal policy is the government-imposed policy used to change economic conditions like demand,…

Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…

A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…

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: What are the potential issues with fiscal policy?

A: The use of govt spending and taxation policies to impact economic circumstances, particularly…

Q: What is the impact of using Fiscal policy tools on an economy - more specifically aggregate demand…

A: The aggregate demand is the aggregate demand of all the goods and services produced in the economy.…

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: How would you explain Discretionary fiscal policy:

A: Fiscal Policy- It is the policy adopted by the government to bring economic stability by the help of…

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: Why is getting the magnitude, or dollar size, of the policy change just right the most difficult…

A: Discretionary fiscal policy is a government policy used for raising the aggregate demand/ spending…

Q: When the economy is in a recessionary mode, what will likely be the actions by government using…

A: In recessionary mode, the government pursue the expansionary fiscal policy which has two tools which…

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: Fiscal Policy) Was fiscal policy effective when the U.S. economy was experiencing stagflation during…

A: Fiscal policy is the policy used by government to stabilize the economy in the business cycle. The…

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: 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…