What is the water -dimoned paradox?

Q: Analyze fiscal policy in order the generate macroeconomic stability.

A: The policy that depicts making use of a collection of revenue by government and expenditure in order…

Q: please answer the following question: 1. Expansionary policies are government policies that: A)…

A: "In macro-economics, there are two kinds of policies i.e. fiscal policy and monetary policy and both…

Q: Is it easier for governments to change taxes or spending plans? Why? What doesthis imply for policy?

A: Fiscal policies are the measures used by the government to affect the economy. The major fiscal…

Q: If the economy is experiencing unemployment, the most appropriate government action to shift the…

A: Unemployment refers to a situation where the workers are ready to offer their labor at the existing…

Q: How an economist thinks that the economy works—is it self-regulating or not?—influences his opinion…

A: SELF REGULATING ECONOMY. Classical economists believe in self-regulating economy. Wage rate and…

Q: Which of the policies that Type A supports will Type C also support? Circle the correct answers. A…

A: Given, Type A: Increase in GDP(Y) and a decrease in the unemployment rate            Type B: Net…

Q: What is Say’s Law? How does the notion of equilibrium factor into the classical economic view? What…

A: Say's law: This implies that demand creates its own demand. It means that the ability to purchase…

Q: Why has Supply Side Economics not yielded the results envisioned by its proponents?

A: The supply-side theory is associate in economic thought whereby increasing the availability of…

Q: What is the main objective and sources of public finance? According to macro economics

A: Public Finance is referred to as government activity that includes taxation, government spending and…

Q: What is supply-sice or "trickle-down" economics? Why do Keynesians reject supply-side economics?…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: An economist who believes the economy is self-regulating is more likely to advocate laissez-faire…

A: There are two schools of thought- (a) Classical School of Thought and (b) Keynesian School of…

Q: ompare fiscal and monetary policy in order the generate macroeconomic stability.(use graphs)

A: The IS curve shows the inverse relationship between interest rate and output. The IS curve is…

Q: Why AD is never a constraint in the classical model?

A: Answer: The classical model assumes that supply creases its own demand (Say's law). So no matter how…

Q: What's a simple explanation of the Keynesian Economic Theory?

A: Keynesian economic science , body of ideas set forth by John Maynard economic expert.John Maynard…

Q: What are the goals of supply side economics? Of the potential supply side tax cuts: income, saving,…

A: The theory of supply-side economics focuses on changing the supply of labour and products by…

Q: compare fiscal and monetary policy in order the generate macroeconomic stability.

A: Government strategies and methods used to manage macroeconomic variables and financial markets are…

Q: What is an inappropriate use of monetary and fiscal policy?

A: When it comes to influencing macroeconomic outcomes, governments have traditionally used one of two…

Q: What are the features of liberalization policy in the economy?

A: According to the given question In simple words we can say that liberalization is basically the…

Q: Consider the following income/expenditure diagram in the simple Keynesian model.   If taxes, T, were…

A: Equilibrium in the keynesian model is achieved at Y= aggregate expenditure.

Q: Price Price AS, AS2 Price AS2 AS, AS, P2 P, a AD, AD2 AD AD2 AD, Q, Q, Quantity O Q, Q2 O Q2 Q,…

A: Meaning of Government Intervention: The term government intervention refers to the government…

Q: If the market is in a recession (bust), what monetary and fiscal policies could the government use…

A: The economic, and financial policy making entities in the economy are in the form of government, and…

Q: If a policy is carried out by a rule, then we have an example of discretionary policy making.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Suppose an economy is hit by a recession and people’s income fall. Show graphically using AD-AS…

A: A recession is said to occur when there is a decline in economic activity for more than six months…

Q: why does the budget require a forecast of the economy? under what circumstances would actual…

A: The forecast of the economy is important to estimate the expenditure and revenue. If the economy is…

Q: If a policy change in policy causes an economy to move a non-Pareto optimal situation to a Pareto…

A: Pareto efficiency, also known as Pareto optimality, is a situation in which resources cannot be…

Q: Explain how Classical and Keynesian economists view the use of active government to maintain full…

A: In economics, two major approaches to analyze an economy is classical economics and Keynesian…

Q: How would a Keynesian Economist use Fiscal Policy to fight a Recession? Please do not write about…

A: "Recession means reduction or fall in the economic activity and this fall is visible in real GDP,…

Q: Should Monetary and Fiscal Policymakers Try to Stabilize the Economy? Explain.

A: Yes, facing booms and depression is something wrong for any economy and stability is necessary which…

Q: John Maynard Keynes suggested that in two theoretical cases there is no automatic tendency for…

A: Keynesian economics is based on two main ideas. First, aggregate demand is more likely than…

Q: what is the meaning of ripple effects and how does it affect an economy?

A: The ripple effect describes a situation where an initial decision or action taken by one individual…

Q: Critically examine the doctrine of the Multiplier.

A: Multiplier: A multiplier extensively alludes to an economic factor that, when expanded or changed,…

Q: Use the following table to answer these questions:                                   Y…

A: In the given table, the value of import is not given to calculate the marginal propensity to…

Q: Are the gains achieved or losses incurred by delaying consumption?

A: Delaying consumption is gainful

Q: Discuss how public choice theory makes the Keynesian Model less relevant/impactful.

A: A theorem that states the use of economic tools in order to deal with traditional problems of…

Q: What is the best approach to managing the economy, supply-side or demand-side economics? There are…

A: Recession: A recession is a macroeconomic term that alludes to a critical decrease in everyday…

Q: The Laffer curve demonstrates that:     policymakers will always reduce tax revenues by…

A: The Laffer Curve theory was developed by the economist Arthur Laffer and it shows the relationship…

Q: Derive and use the equilibrium in the goods market (Keynesian cross) to explain how a drop in…

A: In the Keynesian cross we have, C=a+cY, where c is the marginal propensity to consume. equilibrium…

Q: Prompt: Read “YOU’RE THE ECONOMIST: The Laffer Curve” in Chapter 21. After reading the case, compare…

A:

Q: why did many government introduce "austerity" policies after the 2008/2009 financial crisis…

A: "Austerity" policies constitute of a set of decisions that plays around the budget deficit. Under…

Q: A neoclassical economist and a Keynesian economist are studying the economy of Vineland. It appears…

A: Keynesian economists believe that there is nothing like invisible hand theory. It means that many…

Q: Suppose that the government wants to achieve higher output level and lower unemployment rate at the…

A: Fiscal policy is broadly defined as the policy regime undertaken by the government in order to…

Q: According to you what is the difference between Ricardian Model and the HeckscherOhlin (HO) model?

A: The Ricardian model and Heckscher Ohlin model are two models that explain the theory of comparative…