EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Chapter 30, Problem 16APA
To determine
Describe the supply-side effect of
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Explain the supply-side effects of fiscal policy on employment and potential GDP
Identify one fiscal policy action that could counter the effects identified in part (a). Explain how this policy will affect each of the following.
Output
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During a recession, the government decides to give an additional child tax credit to households of $500 per child on their income tax. Assuming this resulted in additional tax refunds for the households. How could this fiscal policy affect each household and the economy itself? Explain.
Chapter 30 Solutions
EBK ECONOMICS
Ch. 30.1 - Prob. 1RQCh. 30.1 - Prob. 2RQCh. 30.1 - Prob. 3RQCh. 30.1 - Prob. 4RQCh. 30.1 - Prob. 5RQCh. 30.2 - Prob. 1RQCh. 30.2 - Prob. 2RQCh. 30.2 - Prob. 3RQCh. 30.2 - Prob. 4RQCh. 30.2 - Prob. 5RQ
Ch. 30.3 - Prob. 1RQCh. 30.3 - Prob. 2RQCh. 30.3 - Prob. 3RQCh. 30.3 - Prob. 4RQCh. 30.3 - Prob. 5RQCh. 30.4 - Prob. 1RQCh. 30.4 - Prob. 2RQCh. 30.4 - Prob. 3RQCh. 30.4 - Prob. 4RQCh. 30.4 - Prob. 5RQCh. 30 - Prob. 1SPACh. 30 - Prob. 2SPACh. 30 - Prob. 3SPACh. 30 - Prob. 4SPACh. 30 - Prob. 5SPACh. 30 - Prob. 6SPACh. 30 - Prob. 7SPACh. 30 - Prob. 8SPACh. 30 - Prob. 9SPACh. 30 - Prob. 10SPACh. 30 - Prob. 11SPACh. 30 - Prob. 12APACh. 30 - Prob. 13APACh. 30 - Prob. 14APACh. 30 - Prob. 15APACh. 30 - Prob. 16APACh. 30 - Prob. 17APACh. 30 - Prob. 18APACh. 30 - Prob. 19APACh. 30 - Prob. 20APACh. 30 - Prob. 21APACh. 30 - Prob. 22APACh. 30 - Prob. 23APACh. 30 - Prob. 24APACh. 30 - Prob. 25APACh. 30 - Prob. 26APACh. 30 - Prob. 27APACh. 30 - Prob. 28APA
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- Describe the roles of government bodies that determine fiscal policy. Explain fiscal policies’ effects on the economy’s production and employment. How does the enormous U.S. national debt affect the federal government’s fiscal policy? Is the current U.S. national debt a serious problem like a heavy personal debt? Why or why not? Discuss thoroughly.arrow_forwardDiscuss four problems that complicate the application of fiscal policy, include a description of changes that will occur in each market e.g product function, labor market, goods market, comsumption function etc.arrow_forward1. 2. 3. The working-age population in Concordia was estimated to be 6.5 million in a certain year. The country's labor department announced that the total number of unemployed people in the country had gone up to 460,000 during this year while, the total number of people out of the labor force decreased to 2,000,000. Oscar Lewis, a student of labor economics believes that the labor department data is flawed. The government of Concordia adopted expansionary fiscal policies in the last two years with the aim of increasing employment. However, the government has been unable to bring down the unemployment rate in the country. Which of the following, if true, best explains this outcome? OA The government implemented a generous welfare plan 3 years ago to support people who cannot find work. OB. The number of students who enroll for higher education is decreasing every year. Oc. During this period, the country's government reduced the limits on foreign direct investment in key sectors. OD.…arrow_forward
- Find the fiscal deficit if the primary deficit is 760 and the interest payments are 120arrow_forwardOne purpose of discretionary fiscal policy is to Multiple Choice increase government spending during a recession. increase taxes during an expansion. reduce inflation during a recession. reduce inflation during an expansion.arrow_forwardthe impact of fiscal policy on the aggregate price level, unemployment and incomearrow_forward
- Expresses in detail the effects of expansionary and contractionary fiscal policy on income and the price levelarrow_forwardDYNAMIC TAX SCORING—WHAT IS IT, AND WHO WANTS IT? Go to www.google.com and search for information on “dynamic tax scoring.” What is it? How does it relate to supply-side economics? Which political groups support this approach, and why? What groups oppose it, and why?arrow_forwardfiscal policy is most effective when combating recessions caused by demand shocks recessions caused by supply shocks inflation caused by supply and demand shocks inflation caused by supply shocks arrow_forward
- The set of fiscal policies that would be most inflationary would be a(n) ___ Question 14 options: increase in government purchases and taxes. increase in government purchases and a decrease in taxes. decrease in government purchases and an increase in taxes. decrease in government purchases and taxes.arrow_forwardTalona's government has decided to fund its increasing budget deficit by raising capital in the international financial capital markets. Discuss the most likely outcomes that are closely associated this type of fiscal policy.arrow_forwardDiscuss how governments can use fiscal policy to address TWO costs of unemployment.arrow_forward
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