For each of the following fiscal policy proposals, determine whether the primary focus is on aggregate demand or aggregate supply or both: i. $1,000 per person tax reduction ii. a 5% reduction in all tax rates iii. Pell Grants, which are government subsidies for college education iv. government-sponsored prizes for new scientific discoveries v. an increase in unemployment compensation (i) both; (ii) supply-side; (iii) supply-side; (iv) both; (v) demand-side (i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both (i) demand-side; (ii) both; (iii) both; (iv) supply-side; (v) demand-side (i) supply-side; (ii) demand-side; (iii) demand-side; (iv) both; (v) both (i) supply-side; (ii) supply-side; (iii) demand-side; (iv) both; (v) both
For each of the following fiscal policy proposals, determine whether the primary focus is on aggregate demand or aggregate supply or both: i. $1,000 per person tax reduction ii. a 5% reduction in all tax rates iii. Pell Grants, which are government subsidies for college education iv. government-sponsored prizes for new scientific discoveries v. an increase in unemployment compensation (i) both; (ii) supply-side; (iii) supply-side; (iv) both; (v) demand-side (i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both (i) demand-side; (ii) both; (iii) both; (iv) supply-side; (v) demand-side (i) supply-side; (ii) demand-side; (iii) demand-side; (iv) both; (v) both (i) supply-side; (ii) supply-side; (iii) demand-side; (iv) both; (v) both
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 5.13P
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For each of the following fiscal policy proposals, determine whether the primary focus is on aggregate demand or aggregate supply or both:
i. $1,000 per person tax reduction
ii. a 5% reduction in all tax rates
iii. Pell Grants, which are government subsidies for college education
iv. government-sponsored prizes for new scientific discoveries
v. an increase in unemployment compensation
(i) both; (ii) supply-side; (iii) supply-side; (iv) both; (v) demand-side
(i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both
(i) demand-side; (ii) both; (iii) both; (iv) supply-side; (v) demand-side
(i) supply-side; (ii) demand-side; (iii) demand-side; (iv) both; (v) both
(i) supply-side; (ii) supply-side; (iii) demand-side; (iv) both; (v) both
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