Answered: Fiscal policy is the use of government…

Business

Economics

Fiscal policy is the use of government tax and expenditure policy to influence the economy O True O False

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 30RQ: Under what general macroeconomic circumstances might a government use expansionary fiscal policy?...

See similar textbooks

Related questions

Q: (A) explain how rapid urbanization can pose a problem in the country. Explain in 3 sentences only. (...

A: Money has been evolved since long back and people utilise money for various requirements. There are ...

Q: Suppose that there are two firms in a market, firm 1 and firm 2. The market is declining in size. Th...

A: Introduction Initially there are two firms in the market. The game will start at period 0 and goes o...

Q: e. Which curve(s) could represent the change that would occur with a huge natural disaster that dest...

A: PPC shows the different combinations of production of two goods at a given level of resources and te...

Q: A tariff on an imported good lowers the price in the domestic market and raises the price the domest...

A: here we find the given as follow;

Q: Market demand is Qd = 100 - p. Market supply is Qs = 4p. A competitive firm has MC = 2Q. How many fi...

A: In perfectly competitive market, firms are price takers which shows firms do not have control over t...

Q: 1. Why do employers typically pay for specific skills? These skills only work with one employer, thu...

A: Job-specific talents are the skills that allow a job applicant to excel in a given role. Some skills...

Q: 1 (a) Rewrite and explain the main equilibrium equations of the Ramsey model assuming the government...

A: A commodity or service that is freely available to all members of society is referred to as a public...

Q: 1. Given the inverse demand equation P = 10 – 0.05Q and the inverse supply equation P = 1 + 0.10Q: ...

A: Introduction Inverse demand function P = 10 - 0.05 Q Qd = 200 - 20 P Inverse supply function P = 1 +...

Q: 18 Calcurate the least square regression líne equation with the given X and Y values. Consider the v...

A: X Y X2 XY 60 3.1 3600 186 61 3.6 3721 219.6 62 3.8 3844 235.6 63 4 3969 252 65 4.1 4225 26...

Q: Humana Hospital Corporation installed a new MRI machine at a cost of $760,000 this year in its medic...

A: Given information Machine cost (MC) = 76,000 n = 5 Machine sold (MS) = $115,000 Return requirement ...

Q: small a small open economy, illustrate how a fiscal expansion (such as an increase in government spe...

A: Fiscal Expansion is defined as the government spending is higher than their revenue, this condition ...

Q: The federal government wants to improve the fortunes of domestic car manufacturers and is considerin...

A: Answer a. Rebates have been shown to be effective in selling products, increasing visibility, and bu...

Q: QI Suppose that TC0 = $2000, w = $90, and r = $60. a. Graph the isocost line corresponding to a tota...

A: What does it mean to be constrained by a tight budget? A budget restriction is a financial word that...

Q: What is the opportunitiy cost of having health insurance? What is the opportunity cost of not having...

A: The potential gains that an individual, investor, or organisation misses out on when choosing one op...

Q: The movement from point A to point B on the graph shows a. a decrease in demand. b. an increas...

A: Demand curve shows different combinations price and quantity demanded.

Q: Superiority of Robbins' Definition of economics is rightly called the "Superiority of Robbins' Defin...

A: Economics is this same social science that studies how products and services are produced, distribut...

Q: You are the manager of a firm that uses only labor and capital to produce your product. Assume you h...

A: Optimal input bundle would be when the following condition holds,Marginal product of labor / wage ra...

Q: Which of the following statements is (are) not correct? O A. An open-market operation is the purchas...

A: A. Incorrect In open market operations fed purchase and sell government securities to control money...

Q: Data for output (real income) and savings are presented in the table below. a. Fill in the missing v...

A: Formula to calculate:- a) APC=CYb) APS=SYc) MPC=∆C∆Yd) MPS=∆S∆Y

Q: 3. Asurplus is when there is more supply than there is demand. You can find it by subtracting the qu...

A: Surplus is the amount of a good which exists when quantity supplied is more than the quantity demand...

Q: Market demand is Qd 100 - p. Market supply is Qs = 4p. A typical competitive firm has ATC = 10. Is t...

A: Qd=100-pQS=4pFor equilibriumQd=QS100-p=4p-p-4p=-1005p=100p=20andQ=100-20Q=80In long run equlibriumP=...

Q: Say you were interested in maximizing U = U(x,y) with the usual budget constraint, M = Px*x+Py*Y. Ex...

A: Given, Utility function : U=U(x, y)Budget Constraint : M=Px*x+Py*y

Q: Three voters vote over two candidates (A and B), and each voter has two pure strategies: vote for A ...

A: Given, There are Three Players : Voter 1, Voter 2 and Voter 3The three Voters vote for two candidat...

Q: Derive the Slutsky equation from the starting point that: x(р,, р,, М) %3D х. (Р,, Ру, x. (P,, P,, U...

A: Slutsky Equation is defined as the equation which shows the total change in demand consists of the i...

Q: Mavis earns income in two periods, M1 and M2 and buys consumption goods in twd periods as well, C, a...

A: Given information U=u(C1)+u(C2)1+δ Utility is well behaved function lets take 11+δ=β Utility functio...

Q: Name some of the services, if any, you produced at home that do get counted in GDP. Are there any go...

A: In an economy, GDP is used as an economic tool to measure the national income in terms of goods and ...

Q: The New York City Parks Department learned an important lesson about elasticity when it decided to i...

A: Price increased from $100 to $200 and quantity of permits demanded decreased from 2000 to 1000.

Q: An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of wor...

A: Option B is the correct Answer

Q: Ann and Bob are real estate developers, and are considering the following projects: There are two po...

A: Profit structure is following : Hotel Profits 100 m Golf course profits , no hotel 100 m H...

Q: With the provision of a public good: A) Everyone who uses the good benefits from it in proportion t...

A: As the name suggests, Public goods are those goods made available by the government for the benefit ...

Q: CAPITAL 10 15 LABOR O 0 0 0 1 20 20.7 20.5 2 38 39.3 40 3 54 57 58.5 4 68 73 76 5 80 87.3 92.5 6 90 ...

A: Introduction Its answer is It has decreasing returns to scale at all level of capital. Table of prod...

Q: Answer these questions on a separate sheet of paper. -3 Consider the game defined by the matrix: P =...

A: Payoff of the game is : Player 2 -3,3 1, -1 (0.4) & then (0.7) Player 1 4...

Q: d) Suppose the money demand function was of the following form: M^d / P = Y η What must the central...

A: Central bank reduces the interest rate to increase the money supply into an economy by using various...

Q: Which of the following could lead to increases in health care expenditures? (Please choose all that ...

A: In the healthcare market, the expenditure on healthcare services depends upon various demand factors...

Q: Briefly define the terms in 30 to 50 words each: 1: Stagflation, 2: Depression and 3: Recession

A: Stagflation: As we know that stagflation is considered as a type of economic cycle in which both inf...

Q: San Jose Mercury News, March 31, 2020: "As classes go online, students want Stanford to lower tuitio...

A: The explanation for whether the students must be given discounts or not is as follows:-

Q: 2. Cloneville is a town consisting on 100,000 identical citizens. Each citizen has a current total w...

A: Number of citizens =100,000 Utility function for each citizen : U(w) = w1/2 Actuarily fair premium ...

Q: 1. A capital budgeting project is acceptable if the rate of return required for such a project is gr...

A: A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expres...

Q: 1. Assume that Canada is an importer of televisions and that there are no trade restrictions. Canadi...

A: In economics, consumer surplus is the difference between the price a consumer pays for an item and t...

Q: Which of the following DOES NOT agree with the definition/description of Benefit-Cost ratio? A. Bene...

A: The benefit-Cost ratio is a method to analyse the economic worthiness of a project. It compares the ...

Q: The price of long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per m...

A: The data given is:- Nominal price in 1996 = 40 cents Nominal price in 1999 = 22 cents

Q: Define privatization in 30 to 40 words. The definition should be strong and in your own words. Thank...

A: Privatization:- The transition of publicly run or controlled mode of production to private hands or...

Q: With an inverse demand equation of P = 10 – 0.05Q and an inverse supply equation of P = 1 + 0.10Q: ...

Q: rican cities in the early 2000s, and that Medicare enrollees in high-spending cities were a lot h ul...

A: Health care spending is consuming an undeniably bigger extent of GDP consistently, yet there is litt...

Q: If a buyer's willingness to pay for a new bike is 20$ and its actual price is 22$, her consumer surp...

A: Consumer surplus is a measure of consumer welfare that is defined as the excess of a product's socia...

Q: What do you think is the most important aspect to consider when trying to understand the concept of ...

A: Knowledge-based economies in industrialised countries are characterised by the development of inform...

Q: A player's strategy is called free riding when A)The player cannot do better than to cooperate full...

A: Free riding tends to prevent the consumption and production of services and goods through the conven...

Q: • Nominal and Real GDP • Nominal GDP is the sum of the quantities of final goods produced times thei...

A: Gross domestic product is teh total market value produced in domestic boundaries in a year . It is t...

Q: -Question Completion Status: Market for Herring 15 So 8 Sworld + tariff Sworld Do 250 750 1670 3000 ...

A: A country becomes an importer when world price is less than domestic equilibrium price because quant...

Q: Does Design & build or Management Procurement methods or strategies can improve the system of tradit...

A: Introduction Tradition approach also help in developing new approach because as time goes on traditi...

Question

Fiscal policy is the use of government tax and expenditure policy to influence the economy
O True
False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
What is fiscal imbalance? Fiscal imbalance is the _______ value of the government's commitments to pay benefits minus the _______ value of its tax revenues. A. future; future B. future; present C. present; future D. present; present
Why is income increased after "fiscal policy"? Why does our demand for income increase too?
How can fiscal policy eliminate GDP gap
When Amy's income increased her average tax rate decreased trom 20 peroent to 15 percent. When Alice's income increased. her average tax tate increased hom 20 percent to 2 percent When Juke's income incremed, his average tax rate didn't change Ives in an economy witha pgressive ta ystem pays a proportional te and lives in an economy with a regressive ta ystemm OA. Ale Ay Jake 0B Amy Alice Jake OC. Alce, Jake, Amy O D. Jake, Amy Alice
Changes in government purchases and services have a more powerful effect on the economy tham taxes or transfers Truo O False
Our economics have redone their calculations. They now estimate that citizensin our country have an MPC of 0.60. We can fix the problem by decreasing GDP by 250. How much should we increase taxes?
What is Fiscal Policy? Discuss types of Fiscal policies?
What is fiscal multiplier?