ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Discretionary fiscal policy is policy that permanently changes government spending to slow the economy.
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- To enact Contractionary Fiscal Policy, the federal government must be running a budget ___________.arrow_forwardIn regards to time lags as they relate to Fiscal Policy, which lag is possibly the longest and most troublesome? Decision Lag Information Lag Recognition Lag Implementation Lagarrow_forwardI got this one wrong, could you tell me the correct one? thank youarrow_forward
- True or False and explain: Fiscal Policy is effective at reducing the duration of an economic contraction.arrow_forwardmy choice is incorrectarrow_forwardSuppose the government implements contractionary fiscal policy. As a result, the inflation rate will likely _____ and the real growth rate will likely _____ in the short run. Rise or fall?arrow_forward
- To combat inflation, the federal government could apply which fiscal policy? decrease government spending sell government bonds decrease taxes raise interest ratesarrow_forwardExplain how the implementation of this policy is related to the simple spending multiplier. Explain how the fiscal policy could solve the problem of unemployment.arrow_forwardCalculate the primary deficit if Fiscal deficit is $2000 million and the interest payments is $440 millionarrow_forward
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