Homework Answers
Contractionary fiscal policy is likely to reduce the government's budget deficit.
Contractionary fiscal policy means that fiscal policy which involves increasing taxes, decreasing government expenditures or both. Due to inflationary pressure it is necessary to increase in taxes so that households may faces issue regarding spending on income. When households does not have enough income for disposal then consumption is decreases .Due to higher tax profit is reduces and this tends to cutting down of investment expenditures.
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Question 13 (3 points) Which fiscal policy is likely to reduce the government's budget deficit? Contractionary...
If the stimulus above is insufficient, propose a stimulus package that would be "exactly" sufficient to bridge the GDP gap. the government's budget deficit had increased during the re...
If the stimulus above is insufficient, propose a stimulus package that would be "exactly" sufficient to bridge the GDP gap. the government's budget deficit had increased during the recession (partly through automatic fiscal stabilization), many conservatives argued for the urgent need to reduce governmer owever, liberals argued that rushing such austerity measures may not contribute much to reduce the deficit because they may hurt the recovery. Explain
If the stimulus above is insufficient, propose a stimulus package that would be...
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
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all please Question 7 6 pts involves decreases in government spending and increases in taxes, while...
all
please
Question 7 6 pts involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. involves increases in contractionary monetary policy; expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy; contractionary fiscal policy expansionary monetary policy, contractionary monetary policy Question 9 6 pts Which of the following is an example of automatic, expansionary fiscal policy? O Legislation passed to extend unemployment benefits longer than 6 months O Higher personal income...
16) Which of the following is not a way to reduce the government's budget deficit A)...
16) Which of the following is not a way to reduce the government's budget deficit A) selling government assets. B) issuing government bonds. C) raising taxes. D) reducing government spending.
Expansionary fiscal policy that increases the budget deficit may Select one: a. increase business investment by...
Expansionary fiscal policy that increases the budget deficit may Select one: a. increase business investment by reducing interest rates b. increase business investment by increasing interest rates c. reduce business investment by increasing interest rates d. reduce business investment by reducing interest rates
5. Which type of fiscal policy creates budget deficit and why? Should we put more emphasis...
5. Which type of fiscal policy creates budget deficit and why? Should we put more emphasis on budget eficit or the fiscal policy? (2 + 3 points)
FISCAL POLICY IN-CLASS WORKSHEET 2 This question explores the role of expansionary and contractionary fiscal policy...
FISCAL POLICY IN-CLASS WORKSHEET 2 This question explores the role of expansionary and contractionary fiscal policy in the Aggregate Demand and Aggregate Supply model. You will use schedules for an aggregate demand line and an aggregate supply line to identify the equilibrium price level and real GDP in a macroeconomy. Additionally, you will compare the short-run equilibrium level of real GDP to the full employment level of real GDP to identify desirable fiscal policies. Below, you are provided the schedules...
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax...
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax Regressive tax Deficit Dove Deficit Hawk Automatic Stabilizers Laffer curve 1. Use the loanable funds model to explain why classicals argue that government deficits crowd out private spending. Explain why Keynesians argue that government deficits crowd in private spending. 2. Explain the logic behind "trickle down economics" (i.e the supply-side argument in favor of cutting taxes on the wealthy). Explain why Keynesians don't believe...
f contractionary monetary policy is used, then which of the following would be most likely to...
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
Question 2 Explain how the effectiveness of contractionary monetary policy (dM Fiscal policy (dg <0) depends...
Question 2
Explain how the effectiveness of contractionary monetary policy (dM Fiscal policy (dg <0) depends on the magnitude of the response of NX to in r or dNX/dr. Make sure to provide your answer with the relevant mathematical equations, and economic interpretation. points) Question Two: Assume the following equations summarize the structure of an economy. с =C, +0.7(Y - T) са = 2,000 - 50 т * 150 + 0.15Y (M/P) 0.3Y - 10r M/P 3,000 2,000 -10r G...
If the stimulus above is insufficient, propose a stimulus package that would be "exactly" sufficient to bridge the GDP gap. the government's budget deficit had increased during the recession (partly through automatic fiscal stabilization), many conservatives argued for the urgent need to reduce governmer owever, liberals argued that rushing such austerity measures may not contribute much to reduce the deficit because they may hurt the recovery. Explain
If the stimulus above is insufficient, propose a stimulus package that would be...
all
please
Question 7 6 pts involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. involves increases in contractionary monetary policy; expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy; contractionary fiscal policy expansionary monetary policy, contractionary monetary policy Question 9 6 pts Which of the following is an example of automatic, expansionary fiscal policy? O Legislation passed to extend unemployment benefits longer than 6 months O Higher personal income...
5. Which type of fiscal policy creates budget deficit and why? Should we put more emphasis on budget eficit or the fiscal policy? (2 + 3 points)
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax Regressive tax Deficit Dove Deficit Hawk Automatic Stabilizers Laffer curve 1. Use the loanable funds model to explain why classicals argue that government deficits crowd out private spending. Explain why Keynesians argue that government deficits crowd in private spending. 2. Explain the logic behind "trickle down economics" (i.e the supply-side argument in favor of cutting taxes on the wealthy). Explain why Keynesians don't believe...
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
Question 2
Explain how the effectiveness of contractionary monetary policy (dM Fiscal policy (dg <0) depends on the magnitude of the response of NX to in r or dNX/dr. Make sure to provide your answer with the relevant mathematical equations, and economic interpretation. points) Question Two: Assume the following equations summarize the structure of an economy. с =C, +0.7(Y - T) са = 2,000 - 50 т * 150 + 0.15Y (M/P) 0.3Y - 10r M/P 3,000 2,000 -10r G...
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