Homework Answers
The correct answer is 'Option B'.
Fiscal policy is the economic policy that is implemented to influence the economy by changing the taxes and government expenditure. If there is a fall in aggregate demand then expansionary fiscal policy may be implemented by increasing the government spending to increase the aggregate demand in the economy. Therefore, the correct answer is 'Option B'.
Add Answer to:
Question 2 1.5 pts Which of the following is a fiscal policy a government may use...
Should the government use monetary and fiscal policy in an effort to stabilize the economy?
7. Use of discretionary policy to stabilize the economy Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, and the pros and cons of using these tools to combat economic fluctuations. The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (AS), and long-run aggregate supply curve (LRAS) for the U.S. economy in April 2020. Suppose the government...
36 37 Fiscal policy refers to changes in A) state and local taxes and purchases that...
36 37 Fiscal policy refers to changes in A) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives. B) federal taxes and purchases that are intended to achieve macroeconomic policy objectives. C) federal taxes and purchases that are intended to fund the war on terrorism. D) the money supply and interest rates that are intended to achieve macroeconomic policy objectives. 3957 Which of the following is an objective of fiscal policy? A) energy independence from...
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a....
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...
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a. Tax revenues fall as real GDP decreases. b. Congress decides to cut spending on national defense. c. Congress cuts individual income tax rates. d. Tax revenues rise after Congress raises corporate tax rates. QUESTION 7 When a country's economy is producing at a level that is less than its potential GDP, the standardized employment deficit will show a ________ than the actual deficit. a....
Incorrect Question 8 0/1 pts If the economy is rising above potential real GDP, which of...
Incorrect Question 8 0/1 pts If the economy is rising above potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? A decrease in Ooil prices. government purchases. O taxes. the money supply and an increase in interest rates.
8. Using policy to stabilize the economy 8. Using policy to stabilize the economy The government...
8. Using policy to stabilize the economy
8. Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. Shifts in aggregate demand are often the result of waves of pessimism...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing and spending affects aggregate demand. how changes to the budget affect the money supply. how changes to the money supply affect aggregate demand. - Previous Next Question 9 1 pts of the following examples, which is an example of an automatic fiscal policy stabilizer? Congress increases individual income tax rates. Congress decides to cut spending on national parks. Tax revenues increase as real GDP...
- Problem set o Seved Help Limitations of Fiscal Policy Exercise 2 The graph below depicts...
- Problem set o Seved Help Limitations of Fiscal Policy Exercise 2 The graph below depicts an economy where a decline in aggregate demand has caused a recession. The economy's current level of real GDP (Y) is below its long-run equilibrium, which is illustrated by the long-run aggregate supply curve (LRAS), and a price level (P4) below the equilibrium value of Pe a. Use the graph to illustrate what happens when government-enacted expansionary fiscal policy happens too slowly-that is, when...
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a....
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...
(1) Which of the following is not a tool of fiscal policy? Government spending Taxes Tax...
(1) Which of the following is not a tool of fiscal policy? Government spending Taxes Tax incentives Private investment (2) Which of the following statements helps to explain why the economy can be slow to recover from a recession? Workers are less motivated because of reduced expectations, which reduces total output. There is not as much money in circulation to fuel new investment. Wages do not fall quickly, which delays an adjustment to a higher output level....
36 37 Fiscal policy refers to changes in A) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives. B) federal taxes and purchases that are intended to achieve macroeconomic policy objectives. C) federal taxes and purchases that are intended to fund the war on terrorism. D) the money supply and interest rates that are intended to achieve macroeconomic policy objectives. 3957 Which of the following is an objective of fiscal policy? A) energy independence from...
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...
Incorrect Question 8 0/1 pts If the economy is rising above potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? A decrease in Ooil prices. government purchases. O taxes. the money supply and an increase in interest rates.
8. Using policy to stabilize the economy
8. Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. Shifts in aggregate demand are often the result of waves of pessimism...
D Question 5 1 pts A major concern of fiscal policy is how federal government taxing and spending affects aggregate demand. how changes to the budget affect the money supply. how changes to the money supply affect aggregate demand. - Previous Next Question 9 1 pts of the following examples, which is an example of an automatic fiscal policy stabilizer? Congress increases individual income tax rates. Congress decides to cut spending on national parks. Tax revenues increase as real GDP...
- Problem set o Seved Help Limitations of Fiscal Policy Exercise 2 The graph below depicts an economy where a decline in aggregate demand has caused a recession. The economy's current level of real GDP (Y) is below its long-run equilibrium, which is illustrated by the long-run aggregate supply curve (LRAS), and a price level (P4) below the equilibrium value of Pe a. Use the graph to illustrate what happens when government-enacted expansionary fiscal policy happens too slowly-that is, when...
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...
Most questions answered within 3 hours.
-
Debra and Merina sell electronic equipment and supplies through
their partnership. They wish to expand their...
asked 9 seconds ago -
How does a linear regression allow you to better estimate
trends, costs, and other factors in...
asked 8 minutes ago -
1. (15%) Describe the difference between a pull (Kanban), push
and CONWIP production systems.
asked 4 minutes ago -
QUESTION 5
The total area under the Z distribution curve is equal to:
a.
10
b....
asked 13 minutes ago -
Using Python
The variables x and y refer to numbers. Write a code segment
that prompts...
asked 27 minutes ago -
If
the coefficient of static friction between a box and the floor is
0.35 with what...
asked 29 minutes ago -
A die is designed to punch holes with a radius of 1.08 10-2 m in
a...
asked 34 minutes ago -
government can increase import through
a. export subsidies
b. tax breaks
c. increase import tax
d....
asked 34 minutes ago -
Draw the following in the proper skeletal structure or line
angle formula.
5,6,6-tribromo-3,8-dicyclopropyl-7-isopentyldodecane
asked 40 minutes ago -
Two blocks of masses m1 and m2 hang at the ends of a string that
passes...
asked 40 minutes ago -
Linear programming is an excellent technique yet is not applied
nearly enough in the “real world.”...
asked 50 minutes ago -
What three alkenes yield 3-methylpentane on catalytic
hydrogenation?
asked 49 minutes ago