2. Budget philosophies There are several important philosophies regarding budget balances. One way in which they differ is in terms of the time span over which the budget should be balanced. Another difference among budget philosophies involves whether the budget balance is as important as other economic goals. Which of the following budget philosophies advocates ensuring that the economy reaches its potential output? Functional finance Cyclically balanced budget Annually balanced budget A major problem with the implementation of this philosophy is that it: Magnifies business cycle fluctuations Relies upon government officials to budget for surpluses during boom times in order to cover deficits during recessions Can allow the national debt to burgeon with chronic deficits

1. The federal budgetary process This table shows three stages in the federal budgetary process. Select the appropriate month(s) of action for each of the stages. Stage Presidential budget submission Budget resolution Congressional and presidential approvals Month(s) Which of the following are true of the federal budgetary process? Check all that apply. The budgetary process often goes astray due to delays in Congress. Federal agencies develop and submit their budget requests for the upcoming fiscal year to the Congressional Budget Office (CBO). The Congressional Budget Office (CBO) reports its evaluation at budget hearings in both the House of Representatives and the Senate.

5 Which one of the following statements regarding fiscal policy and the budget is correct?(a) When the government plans to stimulate economic activity, it can increasespending or reduce taxes;(b) Revenue from tax is always greater than government spending in SouthAfrica;(c) Demand management only refers to fiscal policy;(d) A contractionary fiscal policy should be implemented to combatunemployment

6. Which of the following is not a fiscal instrument: * O Budget O Public expenditure Taxation All are fiscal instruments TOSHIBA

If you were given the chance to create or amend the 2021 National Budget Plan, What executive department should receive the lion's share (biggest budget)? note: Please choose Department of Health because of COVID-19 pandemic. - What are the projects and programs that needed to be implement? Are these revenue expenditures or capital expenditures? - Is it for long term or by phase implementation? - Where are the locations of the projects? Urban areas or rural areas? - How long do you see the department getting the lion's share? Justify the forecast.

7 - In a circular-flow diagram, funds that flow between households and the government are a) taxes and transfers. b) taxes, transfers, and government spending. C) wages, taxes, and transfers. d) taxes and government spending. e) O taxes, transfers, and profit.

1. Which of the following is NOT a category of fiscal policy?   Group of answer choices government policies regarding taxation government policies regarding money supply in the economy government policies regarding transfer payments and welfare benefits government policies regarding the purchase of goods and services       2. Disposable income   Group of answer choices increases when net taxes increase. increases when saving decreases. decreases when saving increases. increases when income increases.

a. In which instance would "crowding out" likely become a concern? OA balanced budget law prevents the government from taking fiscal action during a recession. O Prior-year budget surpluses allow the government to use saved funds to reduce taxes. O In order to increase spending on infrastructure, the federal government decides to borrow funds. b. One result of "crowding out," due to fiscal action, is difficulty saving income for future purchases. O making economic investments. O purchasing stocks and other financial investments.

9. Make a graph showing the spending and tax revenue of your state government for as many years as you can find (use the government of your home country if you are not from the United States). What trends do you notice? What spending categories make up the largest share of the state budget? What are the largest sources of revenue? e

4. The multiplier effect of a change in government purchases Suppose there is some hypothetical closed economy in which households spend $0.80 of each additional dollar they earn and save the remaining $0.20. The marginal propensity to consume (MPC) for this economy is 0.8 and the spending multiplier for this economy is 5 Suppose the government in this economy decides to decrease government purchases by $400 billion. The decrease in government spending will lead to a decrease in income, creating an initial change in consumption equal to This decreases income yet again, leading to a second change in consumption equal to The total change in demand resulting from the initial change in government spending is The following graph shows the aggregate demand curve (AD) for this economy before the change in government spending Use the green line (triangle symbol) to plot the new aggregate demand curve (AD) after the multiplier effect takes place. For simplicity, assume that there is no…