Fiscal policy measures of the same dollar amounts will have equal effects on the budget balance...
Fiscal policy measures of the same dollar amounts will have equal effects on the budget balance but may change real GDP by different amounts.
T/F
Homework Answers
The given statement is true.
The effect on the real GDP will be governed by the values of the multiplier . If the multiplier varies with the fiscal measure and the AD also then it will give different value of GDP even if the fiscal policy measure of same amount are applied.
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Fiscal policy measures of the same dollar amounts will have
equal effects on the budget balance...
4. Evaluating fiscal policy Aa Aa The graph below shows an economy's government expenditures (G) ...
4. Evaluating fiscal policy Aa Aa The graph below shows an economy's government expenditures (G) and tax revenues (T) at different levels of real GDP G AND T Billions of dollars) 280 T 2008 270 260 250 240 230 220 210 200 600 640 680 720 760 REAL 00P (Bitions of dollars) Hee Clear AL Suppose the economy's full-employment level of real GDP is $680 billion. In 2006, the economy was operating at its full-employment output level, so the standardized...
The government budget balance is the... Difference between government outlays and tax revenues Change in the...
The government budget balance is the... Difference between government outlays and tax revenues Change in the government debt that results from changes in fiscal policy The budget balance that arises because Real GDP differs from Potential GDP The budget balance that occurs when the economy is at full employment
1.Outline how counter cyclical fiscal policy and balanced budget fiscal policy would close a recessionary gap....
1.Outline how counter cyclical fiscal policy and balanced budget fiscal policy would close a recessionary gap. Be specific on goals, how each theory would achieve those goals, how they would close the gap, and potential negative effects. 2.According to monetary policy, explain how the Bank of Canada would react to a recession. Be specific on goals, how they would achieve those goals, how they would close the gap, and potential negative effects. 3.Please describe how the PPC curve represents scarcity,...
If the effects of expansionary fiscal policy hits when the economy is already expanding a. The...
If the effects of expansionary fiscal policy hits when the economy is already expanding a. The effects could lead to even deeper recession b. The policy will have no effect c. The policy is called an automatic stabilizer d. It may lead to excessive aggregate demand and inflation e. It will lead to stagflation
Among the most important problems of implementing fiscal policy include all except which of the following?...
Among the most important problems of implementing fiscal policy include all except which of the following? Correctly timing the desired fiscal stimulus, given the inevitable lags and forecasting errors Determining how large a stimulus to apply Assessing when policy actions should be reversed Determining how long a time lag to apply If the central bank does not use accommodating monetary policy, a fiscal stimulus is likely to increase interest rates, which in turn, will cause planned investment to decrease. What...
6.3 Explain the effect that each of the following fiscal policy measures could have on aggregate...
6.3 Explain the effect that each of the following fiscal policy measures could have on aggregate supply a. The reduction of taxes on capital gains b. Reducing the higher marginal individual income tax rates to the same level as the company income tax rate C. Increasing the marginal income tax rates paid by individuals.
, CBO expects higher long-term deficits The Congressional Budget Office (CBO) says the national debt is...
,
CBO expects higher long-term deficits The Congressional Budget Office (CBO) says the national debt is on an upward path and will hit 122 percent of GD f the govemment decided to slow the growth of debl by cutting transter payments and raising taxes by the same an Cutting transfer payments and raising taxes by the same amount- A. increases the budget deficit increases aggregate demand, and increases real GDP O B. decreases the budget defict, decreases aggregate demand, and...
Can anyone please help me about Venezuela in analysis of fiscal policy: the venezuala government agency...
Can anyone please help me about Venezuela in analysis of
fiscal policy: the venezuala government agency in charge of
this(.e.g Ministry of Finance/Department of Treasury), its recent
tax and government spending changes, the budget situation(
surplus/deficit), the importance of general government expenditure
in GDP.
And please draw AS AD diagram to illustrate the impacts of the
adjustment in its fiscal policy.
4 countries: Venezuela, South Africa, Turkey, Spain Version 2- Fiscal Policy For the specific country that you have chosen,...
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...
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather...
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather than allowing the economy's natural adjustment mechanism to operate is that O A private sector expenditures increase on their own, the policy will stabilize real GDP. OB. It will shorten what might otherwise be a long recession OC. will reduce the inflationary pressure on prices that would otherwise ocur. OD. It wil dose the output gap. Click to select your answer MacBook Air Assume...
4. Evaluating fiscal policy Aa Aa The graph below shows an economy's government expenditures (G) and tax revenues (T) at different levels of real GDP G AND T Billions of dollars) 280 T 2008 270 260 250 240 230 220 210 200 600 640 680 720 760 REAL 00P (Bitions of dollars) Hee Clear AL Suppose the economy's full-employment level of real GDP is $680 billion. In 2006, the economy was operating at its full-employment output level, so the standardized...
6.3 Explain the effect that each of the following fiscal policy measures could have on aggregate supply a. The reduction of taxes on capital gains b. Reducing the higher marginal individual income tax rates to the same level as the company income tax rate C. Increasing the marginal income tax rates paid by individuals.
,
CBO expects higher long-term deficits The Congressional Budget Office (CBO) says the national debt is on an upward path and will hit 122 percent of GD f the govemment decided to slow the growth of debl by cutting transter payments and raising taxes by the same an Cutting transfer payments and raising taxes by the same amount- A. increases the budget deficit increases aggregate demand, and increases real GDP O B. decreases the budget defict, decreases aggregate demand, and...
Can anyone please help me about Venezuela in analysis of
fiscal policy: the venezuala government agency in charge of
this(.e.g Ministry of Finance/Department of Treasury), its recent
tax and government spending changes, the budget situation(
surplus/deficit), the importance of general government expenditure
in GDP.
And please draw AS AD diagram to illustrate the impacts of the
adjustment in its fiscal policy.
4 countries: Venezuela, South Africa, Turkey, Spain Version 2- Fiscal Policy For the specific country that you have chosen,...
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...
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather than allowing the economy's natural adjustment mechanism to operate is that O A private sector expenditures increase on their own, the policy will stabilize real GDP. OB. It will shorten what might otherwise be a long recession OC. will reduce the inflationary pressure on prices that would otherwise ocur. OD. It wil dose the output gap. Click to select your answer MacBook Air Assume...
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