long-run framework, budget surpluses: Select correct and explain why its correct should be run whenever output dips below potential output. should never be run since they crowd out investment in the short run. are better than budget deficits over the long run because unlike budget deficits, they increase saving and investment. should be run on a permanent basis since they boost saving and

Using a correctly labeled loanable funds graph, show the effect of the contractionary fiscal policy decreasing government spending on real interest rates.   Given the change in the real interest rate. What is the impact on each of the following? a. investment b. Economic growth rate. Explain. c. The international value of the dollar. Explain. Now assume instead that the government takes no policy action to fix the problem of the economy that is operating above full employment. In the long run, will the short-run aggregate supply increase, decrease, or remain unchanged? Explain.

If the U.S. government's budget deficits are increasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then: a) government borrowing is likely to crowd out private investment. b) an inflationary increase in the price level is in real danger. c) the central bank might react with an expansionary monetary policy. d) higher interest rates will crowd out private investment.

4. Consider the following demand and supply schedules of loanable funds. All figures are in billion dollars. Assume zero budget deficits and a closed economy. a. Interest Rate 12% 10% 8% 6% 4% 2% Quantity of Funds Demanded $200 $300 $400 $500 $600 $700 Determine the following equilibrium outcomes: (1) The interest rate. (ii) Private savings. (iii) Government (public) savings. (iv) Private business investment. Quantity of Funds Supplied $1000 $900 $800 $700 $600 $500

A government is evaluating the effectiveness of a new tax policy. Economists collect data on tax rates, government revenue, and economic growth before and after the policy implementation. They use econometric methods to assess the policy's impact on economic indicators. This application of econometrics primarily serves to:A) Estimate policy impactB) Create new tax lawsC) Design government websitesD) Recruit government staff Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate

Fiscal policy: Fiscal policy refers to the use of government spending and taxation to influence the economy. In the case of a severe negative supply shock, the government may increase spending to stimulate demand and offset the reduction in supply. For example, the government may invest in infrastructure projects to create jobs and boost economic growth. However, this may lead to an increase in government borrowing and higher interest rates, which can offset the benefits of the fiscal stimulus. show this graphically please.

In the long-run framework, budget surpluses: Choose the Correct and Explain why its correct should be run whenever output dips below potential output. should never be run since they crowd out investment in the short run. are better than budget deficits over the long run because unlike budget deficits, they increase saving and investment. should be run on a permanent basis since they boost saving and investment and stimulate economic growth.

According to economic theory, state governmentsA) will act in the public interest.B) will be biased toward chronic budget deficits.C) will act in the national interest.D) will do all of the above.E) will do none of the above.

This is not a writing assignment, this is a multiple-choice question Which of the below statements is INCORRECT regarding a budget deficit? Group of answer choices   Heavy government spending and persistent federal budget deficits during both good times and recessions result in a strong economy and a high standard of living for its people.   Raising taxes or cutting a budget deficit during a recession will almost certainly make the recession worse.   As an economy slips into recession, incomes and tax revenue fall, while unemployment and unemployment benefits rise, and this results in a deficit budget.   A budget deficit happens when the government spends more than it collects in tax revenue.

A government is issuing treasury bonds to finance its budget deficit. In Financial Economics, this action represents:A) A method to decrease the national debtB) A way to finance government spending without creating debtC) A means of raising public funds by incurring government debtD) A strategy to redistribute wealth without incurring debt