Fiscal policy is what the government uses to control and stabilize the economy, making use of taxation and spending to do this. Fiscal policy seeks to nudge the economy in various directions by either expansionary or contractionary policy, which aims to either boost economic growth by taxes and investment, or reduce economic growth, respectively, to curb inflation. In fact, fiscal policy intercedes in the economic cycle by counteracting problems in an effort to build a sustainable economy, and uses two instruments-taxes and expenditure-to do this.
Fiscal policy's key objectives are to achieve and sustain full employment, achieve a high rate of economic growth and stabilize prices and wages. However, fiscal policy is also being used to combat inflation, raise aggregate demand and other macroeconomic issues. In expansionary fiscal policy (which is the most common approach used), the government imposes policies that can boost or lower taxes, spend money on programs to stimulate the economy, increase jobs, or increase economic efficiency.
One way the government uses monetary policy is to stimulate the economy if it decides that market performance is lagging-and spends more on stimulating the economy (called spending on "stimulus"). However, if the government doesn't have enough cash to finance its own spending, it also borrows money in the form of selling government bonds (or treasury bonds)-debt securities-and then invests the funds under that debt. That is sometimes referred to as "deficit" spending, which is one of the government's main forms of using monetary policy.
Monetary policy is managed by the Fed, or the central bank of the United States. Fiscal policy is managed by Congress, which votes on new taxes and government programs. Fiscal policy is hotly debated as to whether it is an effective means for stabilizing the economy. Many economists hold that it worsens the economy by increasing national debt and stripping purchasing power. To complete the Discussion activity, write a post that answers the following questions: Find two articles by respected...
Assess how the current monetary policy and fiscal policy in the United States may impact your chosen company's financial performance in the short-term (6 months to 1 year). Justify your response. My Company: Walmart
The United States is suffering from a high rate of unemployment. a) Identify two fiscal policy actions that Congress might initiate to solve the problem. b) Using a correctly labeled AD/AS graph, show and explain how the policies you identified in (a) will affect each of the following in the short-run aggregate demand output and employment price level c) Explain how the policies you identified in part (a) will impact real interest rates in the short-run. d) If the interest...
we know that United States is at least using both monetary policy (by lowering the interest rate to be 0%) and fiscal policy (by having 2 trillion USD ready for spending on infrastructures). Given the current condition with the corona virus pandemic still ongoing, and the lock down has not been lifted, How successful do you think the monetary policy (only) would be? and why? How successful do you think the fiscal policy (only) would be? and why? How successful...
Describe the role of policy mix of fiscal and monetary policy actions in stabilizing the inflation, unemployment and RGDP growth for the economy 6.
Describe the role of policy mix of fiscal and monetary policy actions in stabilizing the inflation, unemployment and RGDP growth for the economy 6.
What are the important policy issues related to healthcare delivery in the United States?
Briefly describe the history of unions in the United States.
Describe the enormity and complexity of medicine in the United States.
describe how healthcare is financed in the United States
Discuss how both the fiscal and monetary policies in the United States and in the Bible relate to the model of aggregate demand and aggregate supply and the issues involved in implementing the policies.