Describe a discretionary fiscal restraint package that could be used that would not produce serious negative...
Describe a discretionary fiscal restraint package that could be
used that would not produce serious negative supply-side effects.
A package that would avoid serious negative supply-side effects is
a simultaneous and equal ______.
A. increase in government expenditure and taxes
B. decrease in government expenditure and taxes
C. decrease in taxes and increase in the quantity of money
D. increase in transfer payments and taxes
Homework Answers
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Describe a discretionary fiscal restraint package that could be
used that would not produce serious negative...
The economy is in a recession and the recessionary gap is large. Describe a discretionary fiscal...
The economy is in a recession and the recessionary gap is large. Describe a discretionary fiscal stimulus package that could be used that would not bring an increase in the budget deficit. A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal ______. A. increase in government expenditure and an increase in taxes B. decrease in government expenditure and taxes C. decrease in transfer payments and increase in the quantity of money D. increase...
The economy is in a recession and the recessionary gap is large. A discretionary fiscal stimulation...
The economy is in a recession and the recessionary gap is large. A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal increase in government expenditure and an increase in taxes. decrease in government expenditure and taxes. increase in transfer payments and a decrease in taxes, decrease in transfer payments and increase in the quantity of money increase in transfer payments and decrease in the quantity of money
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an...
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1. Expain the effect of a discretionary cut in taxes of $40 billion on the economy when the economy’s marginal propensity to consume is .75. How does this discretionary fiscal policy differ from a...
1. Expain the effect of a discretionary cut in taxes of $40 billion on the economy when the economy’s marginal propensity to consume is .75. How does this discretionary fiscal policy differ from a discretionary increase in government spending of $40 billion? 2.Explain what is meant by a built-in stabilizer and give two examples. 3.Differentiate between discretionary fiscal policy and nondiscretionary or built-in stabilization policy. 4.What does the “standardized budget” measure and of what significance is this concept? 5.What are...
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
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1. Government spending required by laws other than appropriation acts is also known as what? a....
1. Government spending required by laws other than appropriation acts is also known as what? a. Budget spending b. Mandatory spending c. Discretionary spending d. Deficit spending 2. Which of the following statements is true? a. Mandatory spending is determined by law and discretionary spending is determined by appropriation acts. b. Discretionary spending is determined by the president with advice from Congress, and mandatory spending is determined by the Supreme Court. c. Neither mandatory nor discretionary spending can be changed....
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1) Which of the following is not a category of fiscal policy? a) government policies regarding...
1) Which of the following is not a category of fiscal policy? a) government policies regarding transfer payments and welfare benefits b) government policies regarding the purchase of goods and services c) government policies regarding taxation d) government policies regarding money supply in the economy 2) If output is less than planned aggregate expenditure, there will be a) no change in inventories. b) a planned increase in inventories. c) an unplanned increase in inventories. d) an unplanned decrease in inventories....
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a....
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[11] If an economy were to pursue a policy of maintaining full employment, it would likely...
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The economy is in a recession and the recessionary gap is large. A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal increase in government expenditure and an increase in taxes. decrease in government expenditure and taxes. increase in transfer payments and a decrease in taxes, decrease in transfer payments and increase in the quantity of money increase in transfer payments and decrease in the quantity of money
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. Expansionary fiscal policy Contractionary fiscal policy Not an example of fiscal policy Answer Bank a decrease in government spending an increase in corporate bonds purchased a decrease in transfer payments a decrease in the money supply a decrease in taxes an increase in the money supply a decrease in the unemployment rate an increase in tax rates an increase in...
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a. an increase in taxes and/or an increase in government spending b. an increase in taxes and/or a decrease in government spending! c. a decrease in taxes and/or an increase in government spending d. a decrease in taxes and/or a decrease in government spending e. a decrease in government purchases and/or a decrease in transfer payments 2. An increase in income tax rates: a. makes...
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