Q: Suppose an economy is represented by the following equations. Consumption function C = 200 + 0.8Yd…
A: Given: C = 200 + 0.8 YdI= 400G = 600Exports (EX) = 200Imports (IM) = 0.1 YdAutonomous taxes (T) =…
Q: Identify the relevant economic concept which can be matched to each of the descriptions be Simply…
A: Autonomous consumption: - autonomous means independent, therefore, autonomous consumption is that…
Q: State any two objectives of fiscal policy?
A: According to the given question Gradually we can say that fiscal policy always leads to the…
Q: What do economists mean when they say government purchases are “exhaustive” expenditures whereas…
A: Public expenditure refers to the expenditure that is incurred by the government in providing goods…
Q: olicy"
A: Resource mobilization is the process of receiving resources from the resource provider with use of…
Q: explain the purposes, tools, and limitations of fiscal policy?
A: The economies around the world tend to work with the motive and objective of increasing their…
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: Which part of the AS curve fiscal policy works better and why?
A: Aggregate supply refers to the total value of goods and services available for purchase at a…
Q: What are the implications of the current fiscal stimulus and low interest on the future of our…
A: A stimulus package is defined as a coordinated measure by the government to lift the economy out of…
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: Given: C= 400 + .6Yd. Taxes = 600…
A: Gross domestic product (Y0 is the total value of all final goods and services that produced with in…
Q: Suppose a country's structural budget balance is equal to zero. If the country is currently in a…
A: Budget balance refers to the equality of the revenue received by the government of a nation in the…
Q: How could fiscal policy alleviate the problem? What specific policy changes would be needed?
A: Everything involving public funding or taxes is referred to as fiscal. Fiscal policy refers to how…
Q: Consider two economies, A and B. Economy A has a marginal propensity to consume of 0.9, a net tax…
A: In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate…
Q: Under what conditions is expansionary fiscal policy the most effective at increasing output? Why?
A: Expansionary fiscal policy is the policy which is to be used to push back the equilibrium normal…
Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…
A: Fiscal policy is used by governments that have an economic influence. Changes in taxation and…
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A: The Keynesian equilibrium is one of the macroeconomic models which would result in the aggregate…
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A: Fiscal policy refers to government actions that result in a change in the level of economic activity…
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Q: How much fiscal stimulus or restraint occurred between
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Q: By how much would the $90 billion 2008 tax rebates have shifted AD if the MPC was 0.95? billion
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Q: Explain the objectives of the fiscal policy.
A: In an economy, fiscal policy refers to the government action and it's intervention in the market by…
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: Tools ofmonetary policy and fiscal policy?
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Q: how does the subsidies shift us from the MPC curve to the MSC curve ?
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Q: What is the role of fiscal policy development?
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Q: What causes the “crowding-out effect”? Group of answer choices Government borrowing and spending…
A:
Q: Suppose you have an open economy with Government sector imposing tax to finance its expenditures.…
A: The equilibrium of an economy is achieved when: Y = AD Y = C + I + G + NX Where, C is consumption…
Q: hich of the following policy measures is not discretionary? a. Income tax surcharges designed to…
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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…
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A: The amendments to the income tax policies in the budget are to make it easier for citizens to…
Q: What are some of the problems or challenges of fiscal policy application?
A: When the government uses spending and taxes policies to influence the economic conditions,…
Q: Discuss whether supply-side policies have been successful in improving the performance of an economy…
A: Supply- side policy:- These policies are attempts of government in order to enhance the productivity…
Q: The goods markets of countries A and B are described by the following equations: C = co + c¡ (Y –…
A: Given C=c0+c1Y-T .... (1) I=b0+b1Y-d2i .... (2) G=G For country A: T=t0 For country B:…
Q: Identify the correct equation from the following equations: Disposable income equals national income…
A: National income refers to the value of products and services manufactured by a nation during a…
Q: Fiscal policCy is purposet movements in designed to direct an economy.
A: Fiscal policy is a policy that the government uses to influence the economy. It aims at certain…
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- How does the subsidies move us from the MPC curve to the MSC curve ?Given: C= 400 + .6Yd. Taxes = 600 Equilibrium Output = 4,000 At equilibrium, what is the sum of investment and government purchases in this economy?The macroeconomic effects of federal investment can increase if : a. State and local governments complement federal policy by taxing the federal investment. b. State and local governments accept the federal investment. c. State and local governments offset federal policy by reducing investment. d. State and local governments complement federal policy by also increasing investment.
- Give three yes and three no arguments. Why Are tax cuts good for America?The macroeconomic effects of federal investment can decrease if : a.State and local governments tax investment spending towards other non-investment areas. b.State and local governments complement federal policy by also increasing investment. c.State and local governments keep local investment spending unchanged. d.State and local governments substitute investment spending towards other non-investment areas.Discuss the three main supply-side policies that the government can use to reduceunemployment?