Homework Answers
7. Contractionary fiscal policy involves a decrease in government spending, an increase in taxes and it leads to a left-ward shift in the aggregate demand curve. While,expansionary fiscal policy involves an increase in government spending, a reduction in taxes, and it leads to a right-ward shift in the aggregate demand curve. Hence, the answer is contractionary fiscal policy; expansionary fiscal policy .
9. An example of automatic, expansionary fiscal policy: higher unemployment compensation payments caused by an economic downturn. The expansionary fiscal policy should be used when there is a negative output gap and the economy is in recession.
10. Supply-side economics emphasizes that economic growth can be most effectively created by lowering taxes and decreasing regulation. This theory suggests tax cuts to stimulate GDP in the economy. Hence, the answer is lowering taxes to strengthen incentives to work,save and invest.
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Question 7 6 pts involves decreases in government spending and increases in taxes, while...
Question 7 6 pts involves increases in involves decreases in government spending and increases in taxes,...
Question 7 6 pts involves increases in involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. contractionary monetary policy, expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy, contractionary fiscal policy expansionary monetary policy contractionary monetary policy
Econ HW, please help! UTION # FISCAL POLICY NAME the mix of government spending and taxing...
Econ HW, please help!
UTION # FISCAL POLICY NAME the mix of government spending and taxing in order to balance the Fiscal policy is best defined as: uncontrolled government spending, altering the mix of govern budget every fiscal year. changes in govern macroeconomic goals. vernment spending and taxing for the purpose of achieving certain minimizing government expenditures over the fiscal year. , while reases in government spending and lower taxes represent decreases in government spending and higher taxe contractionary fiscal...
1. If the economy is at full employment, increases in government spending: A) have a multiplier...
1. If the economy is at full employment, increases in government spending: A) have a multiplier effect on equilibrium output. B) have no effect on the aggregate price level. C) are primarily absorbed by price increases. D) reduce aggregate output. 2. Which of the following measures is NOT an example of discretionary fiscal policy? A) The unemployment compensation program pays out more money as unemployment rates rise. B) Tax rates are increased in the hope of slowing down the rate...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
12&13 Question 12 (Mandatory) (1 point) An illustration of the relationship between tax rates and tax...
12&13
Question 12 (Mandatory) (1 point) An illustration of the relationship between tax rates and tax revenues is called the Laffer curve. new classical critique. aggregate demand-aggregate supply model. loanable funds market. marginal tax curve. Question 13 (Mandatory) (1 point) When the government increases spending or decreases taxes to stimulate the economy toward expansion, the government is conducting ... -policy. expansionary monetary expansionary fiscal contractionary monetary contractionary fiscal neither monetary policy nor fiscal
During a recession, if a government uses an expansionary fiscal policy to increase GDP, the: Question...
During a recession, if a government uses an expansionary fiscal policy to increase GDP, the: Question 21 options: a) aggregate supply curve will shift to the right. b) aggregate supply curve will shift to the left. c) aggregate demand curve will shift to the left. d) aggregate demand curve will shift to the right. Suppose the government passes a new law that decreases tax rates. This policy is… Question 22 options: a) automatic and expansionary b) automatic and contractionary c)...
A. If there is complete crowding out as a result of an increase in government spending...
A. If there is complete crowding out as a result of an increase in government spending there will be a decrease in aggregate demand. no change in aggregate demand. an increase in aggregate demand. a downward movement along the aggregate demand curve. B. According to Buchanan and Wagner, why is there a political bias toward expansionary fiscal policy rather than contractionary fiscal policy? In a democracy, expansionary fiscal policy prescriptions are more politically popular than are the policy prescriptions associated...
Which of the following is an example of an expansionary fiscal policy? a. The US government increasing corporate taxes b...
Which of the following is an example of an expansionary fiscal policy? a. The US government increasing corporate taxes b. The US government lowering spending in order to balance the budget c. The US government lowering corporate and individual taxes d. The Fed lowering interest rates Which of the following is an example of contractionary monetary policy? a. The Fed conducting open market purchase b. The Fed conducting open market sale c. The US government increases taxes d. The Fed...
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the...
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the multiplier is A) 5 B) 0.5.C)2. D) 0.3. 6) When the GDP in Kuwait rises relative to the GDP in other countries, will fall and will fall A) exports; imports B) exports; net exports C) imports; net exports D) net exports; imports 7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand...
In an economy where the money supply and aggregate demand have been decreased by the Central...
In an economy where the money supply and aggregate demand have been decreased by the Central Bank, you know that the Central Bank is using 答案选项组 a contractionary monetary policy. an expansionary monetary policy. a loose monetary policy. follow expansionary fiscal policy How does monetary policy affect the market? 答案选项组 Monetary policy has a more of an impact on consumption than investment. Monetary policy has a more of an impact on government spending than investment. Monetary policy has an indirect...
Question 7 6 pts involves increases in involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. contractionary monetary policy, expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy, contractionary fiscal policy expansionary monetary policy contractionary monetary policy
Econ HW, please help!
UTION # FISCAL POLICY NAME the mix of government spending and taxing in order to balance the Fiscal policy is best defined as: uncontrolled government spending, altering the mix of govern budget every fiscal year. changes in govern macroeconomic goals. vernment spending and taxing for the purpose of achieving certain minimizing government expenditures over the fiscal year. , while reases in government spending and lower taxes represent decreases in government spending and higher taxe contractionary fiscal...
1. If the economy is at full employment, increases in government spending: A) have a multiplier effect on equilibrium output. B) have no effect on the aggregate price level. C) are primarily absorbed by price increases. D) reduce aggregate output. 2. Which of the following measures is NOT an example of discretionary fiscal policy? A) The unemployment compensation program pays out more money as unemployment rates rise. B) Tax rates are increased in the hope of slowing down the rate...
12&13
Question 12 (Mandatory) (1 point) An illustration of the relationship between tax rates and tax revenues is called the Laffer curve. new classical critique. aggregate demand-aggregate supply model. loanable funds market. marginal tax curve. Question 13 (Mandatory) (1 point) When the government increases spending or decreases taxes to stimulate the economy toward expansion, the government is conducting ... -policy. expansionary monetary expansionary fiscal contractionary monetary contractionary fiscal neither monetary policy nor fiscal
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the multiplier is A) 5 B) 0.5.C)2. D) 0.3. 6) When the GDP in Kuwait rises relative to the GDP in other countries, will fall and will fall A) exports; imports B) exports; net exports C) imports; net exports D) net exports; imports 7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand...
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