ZuoTi.Pro
Question

Question 54 Supply-side fiscal policy focuses on: increases in government spending that lead to multiple increases...

Question 54

Supply-side fiscal policy focuses on:

increases in government spending that lead to multiple increases in equilibrium income and output.

decreases in government spending and taxing in order to decrease the impact of government on the supply-side of the economy.

decreases in marginal tax rates designed to increase incentives to work and produce.

increases in tax rates designed to increase government revenue, which will enable government to supply more social programs.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Supply side economics is a theory that states that increased production improves economic growth. Supply-side fiscal policy focuses on creating better climate for businesses. The tools it uses are tax-cut and deregulation. It believes that tax cut will allow corporates to more money to hire workers and thus create more goods and services. Thus the correct option is:

decrease in marginal tax rates designed to increase incentives to work and produce.

Kindly upvote :)

0 0
Add a comment
Know the answer?
Add Answer to:
Question 54 Supply-side fiscal policy focuses on: increases in government spending that lead to multiple increases...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 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...

  • 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....

  • macroeconomics Fiscal Policy In Class Assignment You are hired by the president who believes that the...

    macroeconomics Fiscal Policy In Class Assignment You are hired by the president who believes that the economy is operating at a level of $3.2 trillion and that the potential output is $3 trillion. You are told that the national marginal propensity to consume (MPC) is 0.8. What type of government intervention might you recommend, if any? Discuss how this fiscal policy can be implemented through a change in government spending (how much should government spending change). Show your answer graphically...

  • 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...

  • all please Question 7 6 pts involves decreases in government spending and increases in taxes, while...

    all please Question 7 6 pts involves decreases in government spending and increases in taxes, while government spending and decreases in taxes. involves increases in contractionary monetary policy; expansionary monetary policy contractionary fiscal policy, expansionary fiscal policy expansionary fiscal policy; contractionary fiscal policy expansionary monetary policy, contractionary monetary policy Question 9 6 pts Which of the following is an example of automatic, expansionary fiscal policy? O Legislation passed to extend unemployment benefits longer than 6 months O Higher personal income...

  • 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...

  • 1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal...

    1. When countries have severe debt problems: fiscal policy is an especially good idea. expansionary fiscal policy can reduce real growth. it makes no difference for fiscal policy. they can continue to borrow forever without any adverse consequences. 2. Increases in government spending financed through additional borrowing will typically: lead to higher taxes. lead to higher interest rates. stimulate both consumption and investment. provide more stimulus than when government spending is financed through higher taxes. 3. In a recession, automatic...

  • Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an...

    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) 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....

  • 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT