Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter ST1, Problem 2CQ
To determine
The effects of a shift in the composition of the federal budget on the standards of living.
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Students have asked these similar questions
During the past five decades, there has been a shift in the composition of the federal budget toward more spending on income transfers and health care and a smaller share for national defense. Does economics indicate that this change will help Americans achieve higher living standards?
why does the budget require a forecast of the economy? under what circumstances would actual government spending and tax revenue fail to match the budget as approved?
Why does the budget require a forecast of the economy? Under what circumstances would actual government spending and tax revenue fall to match the budget as approved?
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Economics: Private and Public Choice (MindTap Course List)
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- Describe some fiscal policies that governments are presently using to counter the impact of coronavirus on an economy. Discuss if these policies are more, or less likely, to deliver long-term social equity. Could these policies be used to create more social security/welfare; discuss and compare any negative consequences that these policies could have on an economy and critique the various ways the government could minimise or remove such negative consequences?arrow_forwardExplain how the government can use fiscal policy and monetary policy to reduce unemployment.arrow_forwardWhich economic policies affect a government's budget and include the increase or decrease the money supply?arrow_forward
- Refer to the News Wire to answer three questions. NEWS WIRE: FISCAL STIMULUS: TAX CUTS Trump Tax Cuts Boost Spending The Tax Cuts and Jobs Act of 2017 seems to be working. Although the lion's share of President Trump's tax cuts went to business, consumers got a tax break as well. For the average U.S. household, the tax cut amounts to roughly $40 a week in take-home pay. That may not sound like much, but with 130 million households, that extra income can pack some punch. According to the National Retail Federation, consumer spending was up 4.8 percent in the first six months of this year. And the government reports that GDP grew by 4.2 percent in the second quarter, the best performance since 2014. There may be other factors at work here, but tax-cut fueled consumer spending is certainly a big contributor. Source: News accounts of September–October 2018. Instructions: In part a, enter your response as a whole number. In parts b and c, round your responses to one decimal…arrow_forwardSomeone criticizes the government for increasing interest rates but approving the increase in government spending. They are criticizing the government’s ____policy and praising the government ___ policy. Group of answer choices Monetary, Fiscal Fiscal, Monetary Microeconomic, Macroeconomic Macroeconomic, Microeconomicarrow_forwardComment on the statement: “Increasing government spending is preferred to a cut in taxes when the U.S. government seeks to fight a recession.” As we know that the statement is normative, i.e., it has value judgement on the issue of whether large or small government is preferred. Show your own opinion.arrow_forward
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