Discuss and illustrate expansionary fiscal policy will have on the Australian dollar's exchange rate with other currencies, and whether this will help or hinder efforts to smooth the economy.
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- Suppose a temporary rise occurs in world demand for domestic products. Using the line drawing tool, illustrate the impact of this event. Properly label your line. Carefully follow the instructions above and only draw the required object. Now let the government use temporary fiscal contraction to restore full employment. In this case the policy re-establishes full employment A. and restores the currency to its initial value. B. but causes the currency to further appreciate. C. and restores the currency to an unknown value. D. but has an indeterminate effect on the exchange rate. Exchange Rate, E 1 Output, Y DD¹ 8 DD2 AA¹Question 5 What is meant by "a tariff on imports?" Summarize the domestic effect of a tariff on the price of imported goods? Question 6 What is meant by discretionary fiscal policy? Give an example of how the government can use fiscal policy to stimulate consumer spending. (You must use the terms disposable income and demand). Question 7 What is meant by economic growth and why is it one of the most important goals macroeconomists seek to achieve? In your explanation, show the relationship between production, consumption, and investment in periods of economic growth? Question 8 What is meant by the "National Debt?" Explain why the "National Debt" has been both a"benefit and a burden". Give one example showing a benefit and one example that shows the "National Debt" is a burden.Of the four choices below, which causes a shift in the Supply of dollars to the right? A. An expansionary fiscal policy that raised U.S. income and increased U.S. imports.B. An expansionary fiscal policy that raised U.S. income and reduced U.S. imports.C. A contractionary fiscal policy that reduced U.S. income and lowered U.S. imports.D. A contractionary fiscal policy that reduced U.S. income and increased U.S. imports.
- Consider Macroeconomic inter-dependencies between countries. If a large economy such as the US undertakes an expansionary fiscal policy, this willIf the economy is producing at the potential level of output, Yp, but there is a trade deficit. How can the government eliminate the trade deficit, but maintain the output level at Yp? To eliminate the trade deficit and maintain output at Yp, O A policy mix of a real appreciation and a fiscal contraction is needed All of the answers here are incorrect A policy mix of a real depreciation and a fiscal contraction is needed A policy mix of a real appreciation and a fiscal expansion is needed O A policy mix of a real depreciation and a fiscal expansion is neededExplain fiscal policy and give an exmple of how it could be applied to the current COVID situation in the United States.
- 3) Show AD curve for closed and open economy and derive trade balance (NX) curve from there. Explain graphically how an expansionary fiscal policy may not help a low income country eliminate trade deficit. What should be done in such a case? Clearly indicate the changes.The us government has shutdown a number of times in recent history. Explain how a government shutdown will affect the variables inthe national investment and savings identity. Could the shut down affect the governement budge deficit?Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to support the US economy. Also, explain how the Fiscal Policy is expected to impact GDP, Inflation and unemployment Please do fast .. ASAP .. fast
- 2. In 2020, the Australian government as a part of its Covid-related fiscal package made payments to low- income Australians. If you were an economic advisor to the government when that decision was made, would you have supported it? Explain.:What would happen if expansionary fiscal policy was implemented in are cession but, due to lag,did not actually take effect until after the economy was back to potential GDP?1. Using the information in this chapter, label each of the following statements true, false or uncertain. Explain briefly. f. An increase in domestic interest rates, all other factors being equal, increases exports. g. A fiscal expansion, all other factors being equal, tends to increase net exports. h. Fiscal policy has a greater effect on output in an economy with fixed exchange rates than in an economy with flexible exchange rates. i. Underafixedexchangerate, the central bank must keep the domestic interest rate equal to the foreign interest rates.