Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 25, Problem 19APA
(a)
To determine
Identify the factor shrink the
(b)
To determine
Identify the changes in the monetary base and bank reserve.
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Students have asked these similar questions
One of the main arguments against using Fiscal Policy is the crowding out effect. Suppose the government uses government purchases to stimulate the economy.
Explain quantitative easing?
If the Fed’s current policy is quantitative easing, do you think that there is a danger of the government’s current fiscal policy being crowded out? Why or Why not? Explanation required.
Discuss the fiscal policy measures adopted by the government in the last two years. Evaluate the expected effects of these measures on aggregate demand and supply, as well as their impact on the major macroeconomic goals of steady GDP growth, price stability, and full employment. Determine whether these measures are expansionary or contractionary and consider their implications for the budget deficit and national debt.
Explain the most recent monetary policy move by the Federal Reserve (the FED). Determine whether this policy is expansionary or contractionary and elaborate on the reasons behind the Fed's decision. Analyze the observed impacts of this policy. For best results and up-to-date information, refer to recent announcements made by the Federal Open Market Committee (FOMC).
Increasing taxes to reduce national debt is more damaging to the economy than spending reforms because
Tax hikes are much easier to implement and more successful at reducing debt in the long-run but lead to crowding-in, lower debt to GDP ratio, less small business formation hurting economic growth and reducing tax revenue through the Laffer curve effect.
Tax hikes harm economic recovery slowing growth, reducing GDP by more than the tax revenue gained, while increasing unemployment and the need for more government spending, and thus are self-defeating.
Tax hikes shift aggregate demand and aggregate supply left, but spending reforms do not.
4. All of the answers are correct.
Chapter 25 Solutions
Macroeconomics
Ch. 25.1 - Prob. 1RQCh. 25.1 - Prob. 2RQCh. 25.1 - Prob. 3RQCh. 25.1 - Prob. 4RQCh. 25.1 - Prob. 5RQCh. 25.2 - Prob. 1RQCh. 25.2 - Prob. 2RQCh. 25.2 - Prob. 3RQCh. 25.2 - Prob. 4RQCh. 25.2 - Prob. 5RQ
Ch. 25.3 - Prob. 1RQCh. 25.3 - Prob. 2RQCh. 25.3 - Prob. 3RQCh. 25.3 - Prob. 4RQCh. 25.3 - Prob. 5RQCh. 25.4 - Prob. 1RQCh. 25.4 - Prob. 2RQCh. 25.4 - Prob. 3RQCh. 25.5 - Prob. 1RQCh. 25.5 - Prob. 2RQCh. 25.5 - Prob. 3RQCh. 25.5 - Prob. 4RQCh. 25.5 - Prob. 5RQCh. 25.6 - Prob. 1RQCh. 25.6 - Prob. 2RQCh. 25.6 - Prob. 3RQCh. 25.6 - Prob. 4RQCh. 25 - Prob. 1SPACh. 25 - Prob. 2SPACh. 25 - Prob. 3SPACh. 25 - Prob. 4SPACh. 25 - Prob. 5SPACh. 25 - Prob. 6SPACh. 25 - Prob. 7SPACh. 25 - Prob. 8SPACh. 25 - Prob. 9SPACh. 25 - Prob. 10APACh. 25 - Prob. 11APACh. 25 - Prob. 12APACh. 25 - Prob. 13APACh. 25 - Prob. 14APACh. 25 - Prob. 15APACh. 25 - Prob. 16APACh. 25 - Prob. 17APACh. 25 - Prob. 18APACh. 25 - Prob. 19APACh. 25 - Prob. 20APACh. 25 - Prob. 21APACh. 25 - Prob. 22APACh. 25 - Prob. 23APACh. 25 - Prob. 24APACh. 25 - Prob. 25APACh. 25 - Prob. 26APACh. 25 - Prob. 27APA
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