Given a government budget, a recession increases the federal deficit due to autmatic stabilizers All of the above. the economy contracts and tax revenues automatically fall. welfare progeams such as unemployment insurance and food stamps, automatically increase.

One criticism of the fiscal policy ineffectiveness is because: A.the velocity of money is predictable. B.it is dependent on Congress' approval. C.the crowding-out effect increases investment. D.prices and wages are sticky in the short run.

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The task I am struggling with: The accompanying diagram shows the current macroeconomic situation for the economy of Albernia. You have been hired as an economic consultant to help the economy move to potential output Yp. a) Is Albernia facing a recessionary or inflaniotary gap? b) Which type of fiscal policy – expansionary or contractionary – would move the economy of Albernia to potential output Yp? What are some examples of such policies? c) Illustrate the macroeconomic situation in Albernia with a diagram after the succesful fiscal policy has been implemented. Thank you very much for your help.

Which is a good fiscal policy when inflation is very low and unemployment is very high? Decrease the money supply O Increase government purchases of goods and services Cut government transfer payments Decrease the budget deficit

Calculate the budgetary deficit when the total expenditure is 200000 and the total receipts is 70,000

Find the primary deficit if the fiscal deficit is 52 and the interest payments are 12

explain the effect of the crisis 2007-2009 on USA government's budget in long run?

Why did some governments feel that they had to introduce “austerity” fiscal policies soon after the 2008/9 Global Financial Crisis?   please help asap