Does the degree of income inequality in a country matter for the efficacy of fiscal policy?...
Does the degree of income inequality in a country matter for the efficacy of fiscal policy? (Explain your answer in 5- 7 sentences)
Homework Answers
Fiscal Policy is based on tax rates. An expansionary fiscal policy is aimed at lowering tax rate to stimulate demand. A contractionary fiscal policy is aimed at increasing tax rate to curtail aggregate demand. If the economy is following progressive taxation system i.e. tax increases or decreases with the increase or decrease in income, then efficacy of fiscal policy is justifies The economies where income tax system is not progressive, there will be more income inequality as in case of regressive tax which takes a larger percentage of income from low-income earners than from high-income earners and efficacy of fiscal policy in such cases is doubted.
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Does the degree of income inequality in a country matter for the
efficacy of fiscal policy?...
Suppose that you observe that income inequality in Country A is higher than income inequality in...
Suppose that you observe that income inequality in Country A is higher than income inequality in the United States. Suppose you also observe that on average immigrants from Country A have lower skill levels than people in the United States. Is this evidence for or against the Roy Model or neither? Explain.
Pathp Words:57 A WS QUESTION 4 LE How does fiscal policy affect monetary policy? Can the...
Pathp Words:57 A WS QUESTION 4 LE How does fiscal policy affect monetary policy? Can the fiscal policy create a challenge for the monetary policy and the CB? How and when it can create a challenge? Please explain clearly max. in 6 sentences. TTTT Paragraph : Arial : 3 (12pt) %DO QUEST' T. 1 wees Words: 0 QUESTION 5 on this commercial paper? Explain this term max. in 4 sentences. Please explain the concept of backing a commercial paper with...
A)Which specific tools does fiscal policy use? Answer: B)Why is fiscal policy aimed at aggregated demand...
A)Which specific tools does fiscal policy use? Answer: B)Why is fiscal policy aimed at aggregated demand (AD) and not aggregate supply (AS)? Answer: C)Why is supply-side fiscal policy considered to be a slap in the face to John Maynard Keynes? Answer: D)What is the ultimate goal of expansionary fiscal policy, and b) what is the ultimate goal of contractionary fiscal policy? Answer:
If a country moves from immigration harsh policy to immigration friendly policy. Explain, does this policy...
If a country moves from immigration harsh policy to immigration friendly policy. Explain, does this policy affect AA or DD in the first place? Show the eventual effect by drawing AA and DD curve.
Suppose a country is experiencing a recession and a trade surplus. Further assume that the policy...
Suppose a country is experiencing a recession and a trade surplus. Further assume that the policy makers' goals are to achieve full employment output and balanced trade. Given this information, what type of exchange rate and/or fiscal policy can be used to achieve simultaneously these two goals? Explain by drawing graphical models to further show your interpretation of this answer
Assume the government of UK, doesn’t want the tax system to change the inequality in the...
Assume the government of UK, doesn’t want the tax system to change the inequality in the country, because they think it is not fair to change relative income levels using the tax system. Assume a government official is your friend and asked you what kind of a tax system may serve to this purpose, that will be your answer in one or two sentences?
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...
3. When measuring the mass of the cal lid? Explain. lass of the calorimeter, does it matter if yo matter if you inc...
3. When measuring the mass of the cal lid? Explain. lass of the calorimeter, does it matter if yo matter if you include the 4. When performing an experiment in the calorimeter lid on the calorimeter? Explain. e calorimeter, does it matter if you have the 5. When calculating the estimated atomic mass of your un estimated atomic mass of your unknown metal, does using of Dulong and Petit give you an exact number or a range of numbers? what...
1. (10 points) Milton Friedman has pointed out that when expansionary fiscal policy is used to...
1. (10 points) Milton Friedman has pointed out that when expansionary fiscal policy is used to increase real GDP, some private investment will be crowded out. Expansionary monetary policy will usually increase real GDP, by increasing autonomous consumption expenditures and private investment will expansionary monetary policy have the same beneficial effect on autonomous consumption and private investment for a large country in a global economy? Analyze both the fixed and flexible exchange rate cases and explain why the BP line...
Monetary policy is managed by the Fed, or the central bank of the United States. Fiscal...
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Suppose that you observe that income inequality in Country A is higher than income inequality in the United States. Suppose you also observe that on average immigrants from Country A have lower skill levels than people in the United States. Is this evidence for or against the Roy Model or neither? Explain.
Pathp Words:57 A WS QUESTION 4 LE How does fiscal policy affect monetary policy? Can the fiscal policy create a challenge for the monetary policy and the CB? How and when it can create a challenge? Please explain clearly max. in 6 sentences. TTTT Paragraph : Arial : 3 (12pt) %DO QUEST' T. 1 wees Words: 0 QUESTION 5 on this commercial paper? Explain this term max. in 4 sentences. Please explain the concept of backing a commercial paper with...
3. When measuring the mass of the cal lid? Explain. lass of the calorimeter, does it matter if yo matter if you include the 4. When performing an experiment in the calorimeter lid on the calorimeter? Explain. e calorimeter, does it matter if you have the 5. When calculating the estimated atomic mass of your un estimated atomic mass of your unknown metal, does using of Dulong and Petit give you an exact number or a range of numbers? what...
1. (10 points) Milton Friedman has pointed out that when expansionary fiscal policy is used to increase real GDP, some private investment will be crowded out. Expansionary monetary policy will usually increase real GDP, by increasing autonomous consumption expenditures and private investment will expansionary monetary policy have the same beneficial effect on autonomous consumption and private investment for a large country in a global economy? Analyze both the fixed and flexible exchange rate cases and explain why the BP line...
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