Answered: During a recession, if counter-cyclical…

During a recession, if counter-cyclical fiscal policy were implemented we would expect the government to incur a ... Group of answer choices 1. Deficit 2. Surplus

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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During a recession, if counter-cyclical fiscal policy were implemented we would expect the government to incur a ...

Group of answer choices

1. Deficit

2. Surplus

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Social Security and Medicare create a fiscal gap because _______. A. the benefits today exceed the tax revenues to support these programs B. outlays on these programs today minus tax revenues contribute to the government budget deficit C. future generations will have to pay for the benefits received by the current generation D. the present value of current and projected future outlays exceeds those of future tax revenues
“Counter-cyclical fiscal policy” intends to ... Group of answer choices a. Stop the business cycle b. Decrease government spending c. Make the highs of the business cycle higher, while making the lows less low d. Smooth out the business cycle
Our federal government establishes a budget that determines what programs and services can be provided and how to pay for these programs and services. How does fiscal policy differ from the federal government establishing a budget? How does fiscal policy prevent a recession? What are some fiscal policy options for moving the economy out of a recession?
Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues B. Federal government expenditures C. Federal budget deficit D. All of the above are components of federal fiscal policy
1. A serious problem with fiscal policy is thata. All countries borrow heavily from foreigners, which involves great risks b. Fiscal policymakers are independent from political pressures and hence often ignore what would be the common good of the people c. The temptation for politicians to win votes by overspending is too great and is often not controlled d. The policy, once implemented, usually has no impact on theeconomy 2. It is probably fair to say that a. The very high government debt at the present time is a result of fiscal policymakers (politicians) using their tools inappropriately b. The very high government debt at the present time is a result of the expansive policies enacted during a deep economic crisis c. The very high government debt at the present time is a result ofautomatic stabilizers which caused large deficits during the crisis d. All of these factors have contributed to the large government debt
List the 3 major economic goals of fiscal policy. Who is responsible for fiscal policy? What issue or problem in the economy would be fixed with expansionary fiscal policy? Contractionary fiscal policy? Using an aggregate supply and demand graph, show what happens when expansionary fiscal policies are enacted such as the 2017 Tax Cuts and Jobs Act when the economy is at full employment. Label all of the curves, the vertical and horizontal axis and show the direction and impact on the economy.
True or False and explain: Fiscal Policy is effective at reducing the duration of an economic contraction.
Which of the following is NOT a problem associated with implementing fiscal policy. a. Policy lags b. Information lags c. Interest rate lags Od. Impact lags
Some Economists argue that Fiscal policy have no effects in the long run on employment and aggregate output in the economy. What are the arguments behind this belief? EXplain. If indeed the government has to apply the expansionary fiscal policy what would eventually happen to the economy. Explain step by step the process impacting the economy.
How should the government execute Fiscal Policy?
In 10+ sentences, explain how we can eliminate the national debt using fiscal policy. Explain how we could change taxes and/or spending in order to balance the budget. Be specific on who you raise taxes on and where you cut spending. Make sure that you explain why you are making these changes to our fiscal policy. Also, discuss how these contractionary policies will impact our economy.
Using examples from 2008-currently, explain fiscal policy. In your answer be sure to include what Fiscal Policy is and how some of the recent policies have impacted the economy (GDP and Budgets) in both the short term and the long term.