One of the potential upsides of contractionary fiscal policy is a reduction in rev: 06_13_2018 Multiple Choice • • • unemployment. payments on the national debt. tax revenues. • output.
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- AS AD AD Real GDP Which fiscal policy action MIGHT the government take to move the economy from Point A to Point B? A increase the discount rate increase open market operations increase government spending D increase taxes ©2021 Illuminate Education TM, Inc. Price LevelNEXT A BOOKMARK Question 12/28 to stimulate the economy. 2 During a recession, the government can engage in A Expansionary fiscal policy B Cautionary fiscal policy Contractionary fiscal policy D Deflationary fiscal policy DELL esc -> # 2$ & 1 4 6. 8. 9. * 00 司 5Fiscal Policy A closer Look at Fiscal Policy 4. In the 1960's the U.S economy faced inflationary pressures. Assume that in 1968 there was an AD Excess of $190 billion. Assume the MPC-95 (All the following problems require mathematical calculations.) a. What change in government expenditures would you have recommended?
- Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to support the US economy. Also, explain how the Fiscal Policy is expected to impact GDP, Inflation and unemployment. Plz do fast asapWhich is a good fiscal policy when inflation is very low and unemployment is very high? Decrease the money supply O Increase government purchases of goods and services Cut government transfer payments Decrease the budget deficitexplanation. Be sure to exp Assume the United States has been in another recession for the past 10 months. Unemployment is 10% and GDP has dropped $1.9 trillion from its previous peak of $ 20.8 trillion. The housing and heavy equipment industries have been hit the hardest. Inflation has been near the 2% target but has started to dip below. Also, the countries average MPC is 60. Determine the best fiscal policy/strategy to help the economy recover and explain why it is the best choice. Be sure to reference Aggregate Demand and Aggregate Supply and explain your specific tools in your answers. Calculations Explanation Graph (More space for the explanation on the back)
- Discuss Expansionary Fiscal Policy. Who is responsible for implementing fiscal policy? What may be adjusted to implement the policy?According to studies, fiscal policy can be slow to react to economic situations. Identify and discuss one reason why this may occur.Economics Under which condition the fiscal policy has the maximum effect on real national income? Sketch graph and explain your answer.Question 15/28 IV A BOOKMARK 15 MULTIPLE SELECT: If the government decides to utilize a contractionary fiscal policy, which of the following actions can it take? Pick all that apply. A Tax cuts B Tax increases C Spending cuts D Spending increases DELL esc Ce @ # $ % & 1 2 3 4 7 e r y k S f g. C V b m 个 N
- Explain fiscal policy and its role in stabilizing economies during recessions.Cite the five major demand-side components of GDP. Then, identify the major elements affected by fiscal policy.(Figure: Fiscal Policy Options) Use Figure: Fiscal Policy Options. If the aggregate demand curve is AD': Price level LRAS SRAS AD" AD
