Which one of the following statements regarding fiscal policy and the budget is (2) correct?  A contractionary fiscal policy should be implemented to combatunemployment.

Q: How could the government deal with the crowding out effect generated from applying the expansionary…

A: Crowding out effect occurs when the increase in spendings or investment by the government crowds out…

Q: Explain and show the consequence for fiscal policy if the marginal propensity to consume is a…

A: Fiscal policies are the public authority made approaches made to control, fortify and support the…

Q: What is Fiscal Policy? Discuss types of Fiscal policies

A: Fiscal policy refers to change in government expenditure and revenue(taxes) in order to achieve…

Q: Q2: Describe what a fiscal automatic stabilizer is. Given an example.

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: How does fiscal policy affect the equilibrium income in an economy

A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…

Q: Under which condition the fiscal policy has the maximum effect on real national income? Sketch graph…

A: Fiscal policy, measures used by governments to stabilize the economy, specifically by manipulating…

Q: Answer the questions below. a. Discuss why the aggregate supply (AS) curve is relatively flat within…

A: The aggregate supply curve shows the various level of real output at different price levels for the…

Q: Suppose the government decide to use fiscal policy to close the output gap. The marginal propensity…

A: here we calculate the change of government spending require to close the GDP output , by using the…

Q: Which one of the following statements regarding fiscal policy and the budget is   correct?(a) When…

A: The two kinds of macroeconomic policies adopted to tackle the demand or supply shocks faced by an…

Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…

A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…

Q: Real GDP Which fiscal policy action MIGHT the government take to move the economy from Point A to…

A: Fiscal policy is the policy in which government either change his spending or change tax levels for…

Q: Do you notice any crowding out effect when government implemented aggressive expansionary fiscal…

A: Crowding out occurs when rising interest rates cause a decrease in private investment spending,…

Q: Discuss Expansionary Fiscal Policy. Who is responsible for implementing fiscal policy? What may be…

A: Policies are created by the government in order to keep the economy on track and ensure economic…

Q: Discuss ONE likely effect of fiscal policy financed via the accumulation of additional government…

A: Government borrowings assumes a significant part in government's accounts to meet its the public…

Q: Question: Which of the following is an example of a fiscal policy that has no inside lag? a- A…

A: Fiscal policy- there is a change in government expenditure and taxes to impact the money supply.…

Q: One of the arguments against using fiscal policy is __________. Group of answer choices tax cuts…

A: The case against discretionary fiscal policy rests on two arguments: First, the possibility of…

Q: Discuss the challenges of predicting the effects of discretionary fiscal policy on aggregate…

A: fiscal policy refers to the policy of taxation and expenditures of government. Government makes…

Q: A government increases the corporate tax rate from 15 to 17% in an economic recession. Fiscal policy…

A: Fiscal policy can be of two types, procyclical and anticyclical.

Q: Which type of discretionary fiscal policy is likely to have the smallest overall effect on GDP…

A: Discretionary fiscal policy is the government policy to control economic growth and aggregate…

Q: A government shows a primary deficit of $1122 and the expenditure on interest payment is $432 what…

A:

Q: Expansionary fiscal policy include Select one: O a. an increase in net taxes O b. an increase in…

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

Q: Which kind of economic fiscal policy measures do you recommend at the current economic situation…

A: Stagflation is defined as a period of poor economic development and relatively high unemployment—or…

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: True or False and explain: Fiscal Policy is effective at reducing the duration of an economic…

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

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: 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: model of an economy with the following equa Yd he fiscal policy multiplier with respect to incon

A: *Answer:

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: Which is a good fiscal policy when inflation is very low and unemployment is very high? Decrease the…

A: Fiscal policy is a policy used by the government to stabilize the economy. Inflation refers to the…

Q: C = 600 + 0.8Yd , Yd = Y – T, Tg = 100, I= 200, R = 50, G = 350, X = 250 and M = 200 + 0.1Y.   How…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Which of the following is a reason for using expansionary fiscal policy during a recession? a)…

A: A recession is a period of economic slowdown. It is defined as a significant decline in economic…

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: 15 MULTIPLE SELECT: If the government decides to utilize a contractionary fiscal policy, which of…

A: Fiscal policy is sometimes compared with monetary policy, which is determined by central bankers…

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: Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one…

A: Headline fiscal deficit Vs the primary fiscal deficit 1. The primary deficit is the amount of…

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: Can you suggest fiscal solutions for the economic problems of the United States between 2000-2005

A: The economic problem of the United States between 2000-2005 was a major dropdown for the country's…

Q: Compare two fiscal policies: a tax cut on income or an increase in government spending on roads and…

A: FP is a tool of government to stimulate the economy. It includes government expenditure and taxes,…

Q: Answer the questions below. a, Discuss why the aggregate supply (AS) curve is relatively flat within…

A: a) When the aggregate output lies in the low range, it implies that the economy has a large amount…

Q: Assume the economy has entered a recession. Identify two fiscal policy actions that could be used to…

A: The recession would result in the fall in the output and the fall in the GDP . The recession would…

Q: Outline the supply-side view of fiscal policy. How does this view differ from the various…

A: In the Supply- side view, the output of the economy is stimulated to increase by increasing the…

Q: Describe the role of the budget in fiscal policy

A: Fiscal policy is the use of public funds and tax assessments to affect the economy. Governments…

Q: Explain how the implementation of this policy is related to the simple spending multiplier. Explain…

A: Fiscal policy is a branch of monetary policy where the government try to manage the or adjust the…

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.