Explain the effectiveness of the fiscal policy in economics.

Q: Distinguish between automatic fiscal policy and discretionary fiscal policy. What type of fiscal…

A: Fiscal policy refers to the government policy regarding tax and government spending which stabilizes…

Q: If government policy makers were worried about the inflationary potential of the economy, which of…

A: When government worried about inflation, it can use contractionary fiscal policy to reduce the…

Q: State any two objectives of fiscal policy?

A: According to the given question Gradually we can say that fiscal policy always leads to the…

Q: Explain and show the consequence for fiscal policy if the marginal propensity to consume is a…

A: Fiscal policies are the public authority made approaches made to control, fortify and support the…

Q: Why is a $100 billion increase in government spending on goods and services more expansionary than a…

A: According to the aggregate expenditure model Total income (Y) = Consumption (c +b(Y-Taxes) +…

Q: Describe the difficulties that can arise in implementing fiscal policy.??

A: Fiscal policy is known to be the policy in which the government uses three instruments which include…

Q: Which part of the AS curve fiscal policy works better and why?

A: Aggregate supply refers to the total value of goods and services available for purchase at a…

Q: Briefly explain how an expansionary fiscal policy works.

A: In an economy, fiscal policy refers to the action of the government when it tries to influence the…

Q: Under which condition the fiscal policy has the maximum effect on real national income? Sketch graph…

A: Fiscal policy, measures used by governments to stabilize the economy, specifically by manipulating…

Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: What is the meaning and definitions of fiscal policy?

A: Fiscal policy is implemented by the government of a country. Money supply refers to the total volume…

Q: What is an expansionary gap? What fiscal policy might close that gap?

A: Answer: Introduction: Expansionary gap: when the actual output level exceeds the potential output…

Q: What would be the primary deficit if the fiscal deficit is $700 and Interest payment is $300 ?

A: A fiscal deficit is a setback in an administration's pay contrasted and its spending. An…

Q: Identify and explain the fiscal policy implementation issues in detail along with relevant example.

A: Fiscal policy implies the use of government spending and taxation to influence the economy's overall…

Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…

A: Fiscal policy is used by governments that have an economic influence. Changes in taxation and…

Q: Explain the Expansionary and Contactionary Fiscal Policy with the help of diagram.

A: Fiscal policy is used by the central government of the country or finance ministry of the country to…

Q: Classify each statement based on the type of fiscal policy to which it refers. Expansionary fiscal…

A: The fiscal policy action that is used by the government to increase the aggregate demand is known as…

Q: Why Krugman believe that fiscal austerity in france or more generally in Europe would fail?

A: Fiscal austerity is used to define the steps or the direction taken by government which leads to…

Q: Explain what is Fiscal policy and how to use it in order to overcome the current inflationary…

A: Inflation is the rate at which the general level of prices for goods and services is increasing over…

Q: What are the reasons of fiscal policy not being effective in an economy according to classical…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: Explain how time lags present an additional problem in fiscal policy.

A: Fiscal policy is policy of expenditure and taxes. Fiscal policy is operated by the government. Lags…

Q: From a political economy perspective, why does fiscal policy have a built-in expansionary bias?

A: Fiscal policy refers to the use of government spending and taxation to influence the economy. It…

Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…

A: The answer is - raising the quantity of money in circulation

Q: Explain fiscal policy and its role in stabilizing economies during recessions.

A: Fiscal policy is an instrumental component in the hands of legislatures to influence a country's…

Q: What the difinition of fiscal policy?

A: A policy is a set of rules, guidelines, or principles that dictate the decisions, actions, and…

Q: Cite the five major demand-side components of GDP. Then, identify the major elements affected by…

A: Gross domestic product of a country is the market value of all final commodities and services that…

Q: Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.

A: Fiscal policy is the use of government spending and taxation to adjust the economy. It is a method…

Q: Why do critics charge that fiscal policy has a “big-government bias”?

A: Answer-Fiscal policy is the notion that government should actively stimulate the economy in bad…

Q: List what specific, deliberate actions the federal government could take to enact expansionary…

A: Expansionary fiscal policy is aimed at increasing aggregate demand when the economy is in a…

Q: T F Fiscal policy determines the level of interestrates.

A: Fiscal policy refers to the taxation and expenditure decisions of the government that influences a…

Q: Clearly distinguish between expansionary and contractionary fiscal policy.

A: Introduction Fiscal Policy Fiscal policy is controlled by the central government of the country.…

Q: and

A: Supply-side economics is theory postulating that tax cuts for the wealthy result in increased…

Q: How relevant is the multiplier concept to the implementation of expansionary and contractionary…

A: The factor that shows either an increase or decrease in the base value is denoted by a multiplier.…

Q: Explain why implementation lag for fiscal policy is longer than monetary policy.

A: Fiscal Policy Monetary Policy The fiscal policy is the use of government revenue (taxes or tax…

Q: An example of a expansionary fiscal policy is ___? need only one example fast

A: Accordingly the expansionary fiscal policy is merely known as a decrease in the tax revenue and the…

Q: What is the difference between expansionary and contractionary fiscal policy and what effects does…

A: Fiscal Policy: Fiscal policy is a part of an economic policy that is monitor by the government of…

Q: What are the potential issues with fiscal policy?

A: The use of govt spending and taxation policies to impact economic circumstances, particularly…

Q: Describe how expansionary fiscal policy can fail during a recession.

A: Fiscal policy refers to the policy taken by the government to influence the economy of a nation. The…

Q: Which of the following is an example of fiscal policy? Select an answer and submit. For keyboard…

A: Fiscal Policy refers to the measures employed by the governments to stabilize the economy of the…