Fiscal policy refers to the idea that aggregate demand is affected by changes in a. the money supply. b. government spending and taxes. c. trade policy. d. All of the above are correct.
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the money supply.
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government spending and taxes.
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trade policy.
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All of the above are correct.
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- Which of the following statements do economists NOT agree on? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try and stabilize the economy.Just the answers please no need for you to write anything else I know your tired also Which of the following is an example of fiscal policy? a. Fighting the war on terror b. Giving people school vouchers c. President’s Obama’s tax cut package d. All of the above are examples A fiscal stimulus is intended to: a. Shift aggregate demand to the left b. Shift aggregate supply to the right c. Shift aggregate demand to the right d. Shift aggregate supply to the left If MPC is .80, and government spending increases by $200 billion then: a. Total spending will increase by $200 billion b. Total spending will increase by $400 billion c. Total spending will decrease by $200 billion d. Total spending will increase by $1000 billion Which of the following will not undermine the effectiveness of fiscal policy? a. Private borrowing may be crowded out by government borrowing b. Time lags c. Multiplier effects d. Politicians will disagree about the proper fiscal…When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising A. monetary policy. B. discretionary fiscal policy. C. automatic government budgetary policy. D. a laissez-faire policy.
- What is the best combination of fiscal policies and monetary policies for a country like Japan whose price levels are increasing while unemployment is being controlled? a.None of the choices is correct b.Decrease taxes, decrease government spending and decrease money supply c.Decrease taxes, increase government spending and increase money supply d.Increase taxes, decrease government spending and decrease money supplyWhat is a default on the national debt? A. The Federal Reserve purchases Treasurys issued by the federal government. B. The federal government buys back its own debt from the holders of United States Treasuries by having the Treasury print money. C. The holders of United States Treasurys forgive the debt and provide the government with cash. D. The federal government declares bankruptcy or restructures the payments on its debts with the lenders.An example of a fiscal policy designed to increase real GDP is a. a cut in taxes. b. an increase in taxes. c. a decrease in government expenditure. d. None of these answers is correct.
- What is the best combination of fiscal policies and monetary policies for a country like Japan whose price levels are increasing while unemployment is being controlled? a. Decrease taxes, increase government spending and increase money supply b. Decrease taxes, decrease government spending and decrease money supply c. None of these choice is correct d. Increase taxes, decrease government spending and decrease money supplyThe economy is at full employment, but the government is disappointed with the growth rate of real GDP. It wants to increase real GDP growth by stimulating investment. At the same time, it wants to avoid an increase in the price level. a.Suggest a combination of fiscal and monetary policies that will achieve the government’s objective. b.Which policy would you recommend that the government adopt? c. Explain the mechanisms at work under your recommended policy. d.What is the effect of your recommended policy on the composition of aggregate demand? eWhat are the short-run and long-run effects of your recommended policy on real GDP and the price level?Fiscal and Monetary Policy Assignment When the economy gets into serious problems, the government has two policies that offer the potential to get us back to equilibrium. Fiscal Policy works through government spending and taxes, while Monetary Policy works through the money supply. Read each scenario below and decide what the correct fiscal and monetary policy would be to correct the issue. 1. You read the following information on the economy. The economy has fallen into a recession. Use this information to do three things below: A. Draw an AS & AD graph that fits the details above. B. What is the corrective fiscal policy in this case?
- John Maynard Keynes would agree most with which of the following statements? A. Tax breaks to large corporations will encourage an increase in production. B. The government should focus on long-run productivity. C. We should focus on the short-run state of the economy as opposed to the long-run. D. While fiscal policy can be useful, the costs greatly exceed any benefit.fill in the blank The two types of national policies that influence the national economy are_________ policy and ________ policy.Typical goals for fiscal policy are A. high employment and price stability. B. high prices for consumers and low prices for businesses. C. running high deficits and raising consumer prices. D. increasing the money supply so the government can spend more.