Q: What is the importance of fiscal policy during times of economic recession?
A: Fiscal policy refers to the type of the economic policy in which the government of a country tries…
Q: Is expansionary fiscal policy more attractive to politicians who believe in larger government or to…
A: The fiscal policy is the policy of the government regarding the taxation and the government…
Q: What is meant by fiscal policy? How far can it be used to ensure, a high level of employment?
A: In a market economy, decisions are taken by the market forces and the government has limited…
Q: Fiscal policy is conducted by the government and aims at boosting the economy; which of the…
A: The economies around the world have various entities, which are considered to be decision makers,…
Q: Q6. How does fiscal policy affect the economy?
A: Answer: Fiscal policy: fiscal policy refers to the policy of government in which the government…
Q: What are the consequences of a high Debt to GDP ratio for the economy?
A: The debt-to-GDP ratio is the ratio of a country's government debt and its gross domestic product…
Q: Under which condition the fiscal policy has the maximum effect on real national income? Sketch graph…
A: Fiscal policy, measures used by governments to stabilize the economy, specifically by manipulating…
Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.
A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…
Q: Explain, using appropriate diagrams, how a rise in the household saving rate can cause a fall in…
A: GDP is the value of final goods and services produced in the country within a given period of time.
Q: fiscal policy
A: There are two policies which go hand in hand to regulate or stimulate the economy. The monetary…
Q: Analyse the action that government can take to assist the economy during a recession
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: Why do you think that expansionary fiscal policy can fail during a recession?
A: Recession is a situation in the economy, when there is general decline in the economic activity. For…
Q: What is the role of the Council Economic Advisers (CEA) as it relates to the effectiveness of the…
A: The Council Economic Advisor or CEA created as in the Employment act of 1946, assists and advice the…
Q: What is expansionary fiscal policy? What is contractionary fiscal policy? Does expansionary fiscal…
A: In Keynesian macroeconomic theory, aggregate demand plays a very major role in stabilizing the…
Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…
A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…
Q: Describe the shortcomings of Fiscal Policy. Be as thorough as possible.
A: Fiscal policy is the one where government changes its spending and tax policies in order to achieve…
Q: What are the reasons of fiscal policy not being effective in an economy according to classical…
A: The classical theory focuses on free markets and that the markets will regulate themselves when they…
Q: f an increase in government spending is accompanied by a reduction in spending by firms and…
A: The GDP or the gross domestic product is defined as the value of all final goods and services newly…
Q: Which of the following is carried out in a contractionary fiscal policy? a. Higher taxes and lower…
A: Fiscal policy is initiated by the government of the country.
Q: Which type of discretionary fiscal policy is likely to have the smallest overall effect on GDP…
A: Discretionary fiscal policy is the government policy to control economic growth and aggregate…
Q: Cite the five major demand-side components of GDP. Then, identify the major elements affected by…
A: Gross domestic product of a country is the market value of all final commodities and services that…
Q: Imagine Sri Lanka is trying to reduce inflation using a contractionary fiscal policy. Discuss the…
A: The government uses fiscal policy to stabilize the economy when it is overheated or output growth is…
Q: List what specific, deliberate actions the federal government could take to enact expansionary…
A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…
Q: To enact Contractionary Fiscal Policy, the federal government must be running a budget ___________.
A: Contractionary fiscal policy is the point at which the public authority either reduces spending or…
Q: Which kind of economic fiscal policy measures do you recommend at the current economic situation…
A: Stagflation is defined as a period of poor economic development and relatively high unemployment—or…
Q: How relevant is the multiplier concept to the implementation of expansionary and contractionary…
A: Spending multiplier: - it is a fraction that shows the magnitude of the change in national income…
Q: Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues…
A: The fiscal policy plays an important role in stabilizing an economy. By synchronized with monetary…
Q: when can we say that fiscal policy succeeded and where/ when can we say that fiscal policy has…
A: Fiscal policy refers to the actions used by governments to stabilize the economy, particularly…
Q: Who is in charge of fiscal policies, and how do their different multipliers work?
A: The fiscal policy is the use of the government budget to affect an economy. when the government…
Q: What is fiscal imbalance? Fiscal imbalance is the _______ value of the government's commitments…
A: What is the fiscal imbalance? Fiscal imbalance refers to a situation where all of the government's…
Q: What will be the primary deficit if the fiscal deficit is 320 and the interest payment by the…
A: The variable that captures the borrowing requirements of the government other than the obligation…
Q: What would the government budget balance be equal to? $ trillion.
A: GDP is the sum of consumption, investment and government spending. When government spending exceeds…
Q: In order to boost the economy, the government should implement expansionary fiscal policy by…
A: Fiscal policy is the tool used by government to achieve the objectives of economy such as economic…
Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…
A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…
Q: Should the government fight recessions with spending hikes rather than tax cuts ? Explain
A: Government spending and tax reductions have different multiplying effects on the economy.
Q: What is fiscal multiplier?
A: Formula for fiscal Multiplier is Fiscal Multiplier=11-MPC where MPC is marginal propensity to…
Q: Identify the effects of fiscal policy on the economy
A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…
Q: Which of the following is a reason for using expansionary fiscal policy during a recession? a)…
A: A recession is a period of economic slowdown. It is defined as a significant decline in economic…
Q: How can fiscal policy eliminate GDP gap
A: Fiscal policy refers to how the government uses spending and tax policies to influence economic…
Q: 15 MULTIPLE SELECT: If the government decides to utilize a contractionary fiscal policy, which of…
A: Fiscal policy is sometimes compared with monetary policy, which is determined by central bankers…
Q: Why is getting the magnitude, or dollar size, of the policy change just right the most difficult…
A: Discretionary fiscal policy is a government policy used for raising the aggregate demand/ spending…
Q: Which of the following is an expansionary fiscal policy? increase in taxes only both increase in…
A: Fiscal policy is the term used to describe how the government uses spending and taxation to affect…
Q: What is macro stability and resource mobilization in fiscal policy?
A: In an economy, fiscal policy implies the action of the government to influence the aggregate demand…
Q: Can you suggest fiscal solutions for the economic problems of the United States between 2000-2005
A: The economic problem of the United States between 2000-2005 was a major dropdown for the country's…
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- what are the objectives of fiscal policy?Compare two fiscal policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and long-term impacts of such policies on the economy?Use the table to answer the following questions: Public Debt over Time United States France Italy Belgium Australia France Belgium Australia the United States 2001 Debt $3.3 trillion $0.9 trillion $1.5 trillion $0.3 trillion $0.2 trillion According to the table, which country appeared to be in the worst fiscal shape in 2012? Italy GDP $10.2 trillion $1.5 trillion $1.2 trillion $0.3 trillion $0.7 trillion 2011 Debt $12.2 trillion $1.8 trillion $1.7 trillion $0.3 trillion $0.4 trillion GDP $15.0 trillion $2.0 trillion $1.6 trillion $0.4 trillion $1.4 trillion
- Cite the five major demand-side components of GDP. Then, identify the major elements affected by fiscal policy.When the economy is in a recessionary mode, what will likely be the actions by government using fiscal policy?What are the Reason that affect the increasing purchase of goods and services in the government of country?
