Policymakers may be better able to achieve their goals using a fixed policy rule rather than using discretion if they face the problem of: short and predictable outside lags. short and predictable inside lags. O weak autoratic stabilizers. time-inconsistent policy.

Q: The various kinds of automatic stabilizers are: Group of answer choices Expansionary Monetary Policy…

A: Automatic stabilizers are designed in such a manner that they automatically change as per the…

Q: The $1200 and $600 stimulus checks that many Americans received over the last year is an example of…

A: Meaning of Economic Growth: The term economic growth refers to the growth towards the internal…

Q: Analyze fiscal policy in order the generate macroeconomic stability.

A: The policy that depicts making use of a collection of revenue by government and expenditure in order…

Q: When the economy is going through recessionary gap, which of the below policy is more likely to be…

A: Aggregate Demand curve (AD) is the downward sloping curve which shows an inverse relationship…

Q: Categorize the scenarios as either a discretionary act or the result of automatic stabilizers. a. A…

A: A discretionary expenditure is a cost that a firm or family may live without if it is absolutely…

Q: Identify the arguments in favor of (pro) and opposed to (con) the case of government intervention to…

A: The government intervention in the economy is a very important question right from the period of the…

Q: All of the following are automatic fiscal stabilizers EXCEPT O a congressionally mandated decrease…

A: An automatic stabilizer is a policy in effect at all the time in an economy and works inverse of the…

Q: please answer the following question: 1. Automatic stabilizers: A) work without the need for…

A: A boom illustrates a phase of elevated or rised growth within a business, market, industry, or…

Q: As discussed in the class, discretionary policies are the actions the administration takes in order…

A: The macroeconomic policies that are formulated in the wake of the changes in the economy, by the…

Q: Initially, there is no output gap and inflation expectations are 2%. Then, expansionary fiscal…

A: GIVEN   Initially, there is no output gap and inflation expectations are 2%. Then, expansionary…

Q: what type(s) of stimulus policy can account for an increase in interest rates and an increase in…

A: Economic stimulus is behavior by the state which induces private industry economic investment by…

Q: Which of the following would be a fiscal policy prescription for ending inflation? A) Raise taxes…

A: Inflation is the incident when the general price-level(P) of the economy rises over time. The…

Q: Spending caps and sequestration have limited previous administration; what opportunities are…

A: The following problem in relation to USA government has been answered as follows:

Q: Define and give three examples of automatic stabilizers

A: Automatic stabilizers are the ones that get automatically adjusted without government interference…

Q: True/False  Unemployment benefits are an example of fiscal policy.

A: An unemployment benefit refers to a benefit provided to an unemployed person by the state in terms…

Q: What is the crowding-out effect? How does it modify the implications of the basic Keynesian model…

A: "Since you have asked multiple questions, we will answer only first two questions for you. If you…

Q: How do (a) Income tax during inflation, (b) Unemployment benefits and other transfer payments during…

A: Automatic Stabilizer:-  Automatic stabilizers are long-term governmental programmes that modify…

Q: Fiscal policy can be classified into which two groups? A. Keynesian and classical B. discretionary &…

A: Fiscal policy refers to the government action to influence the market by making changes in taxation…

Q: 3. Automatic stabilizers: Group of answer choices work without the need for decisions from Congress…

A: An automatic stabilizer implies the market forces that act automatically in the market to correct…

Q: Fiscal policymakers are faced with a $6 trillion dollar inflationary gap and are worried about…

A: Inflationary gap = $6 trillion  MPC = 0.9 Change in tax = 0.5 trillion

Q: a. Which of the following are considered limitations of fiscal policy? Instructions: In order to…

A: In an economy, when any economic policy is implemented to deal with the market conditions, there are…

Q: Automatic stabilizers   a)increase consumption during a recession above what it would otherwise be…

A: Automatic stabilizers work to maintain the equilibrium in the economy.  Too much of inflation or…

Q: Which of the following statements in completely true about automatic stabilizers Select one: O a.…

A: The business cycle depicts the different phases of economic growth over a period of time, i.e.,…

Q: Which of these statements about automatic stabilisers is true? a) They eliminate the fluctuations…

A: An economy is said to be operating free when there is no government that does not intervene in the…

Q: Classify the actions as either discretionary spending or an automatic stabilizer. Place each action…

A:

Q: Supply-side edonomists argue that Supply and secure economic prosperity. on businesses (or…

A: Aggregate supply is the overall production of goods and services that is available in a particular…

Q: Suppose aggregate demand is at AD2 and a recession occurs. The goal of an automatic stabilizer would…

A: A recession is a business cycle contraction that occurs when there is a broad fall in economic…

Q: Briefly discuss how time lag could be an argument against policy activism. What is the role of…

A: The government of a nation adopts various policies in order to bring stability in the economy. The…

Q: h of the following are arguments in favour of active stabilization policy by the government? Check…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…

Q: Is fiscal policy, say an increase in government expenditures (G), effective according to the Real…

A: The following problem has been solved as follows:

Q: The idea of policy making taking place in response to a predetermined set of rules is referred to as…

A: A policy that is based on a predetermined set of rules is called passive policy. In Passive fiscal…

Q: Assuming a constant money supply, government expenditures can be financed by which of the following?…

A: The money supply helps the economy to grow by increasing the purchasing power on one hand while it…

Q: Define then three ranges of the aggregate supply curve in the AD/AS framework.

A: Hi, you have asked multiple questions in a single session. As per our policy I can answer only the…

Q: Automatic fiscal stabilizers the impact of demand or supply shocks on the economy since during booms…

A: Automatic fiscal stabilizers are the features of government budget, particularly welfare spending…

Q: Which statement is CORRECT? O A) Automatic stabilizers indicate deliberate action by policy makers.…

A: Answer: In the case of discretionary fiscal policy, the government takes deliberate action to either…

Q: When GDP and incomes are high, the government collects more dollars in tax revenue. When they're…

A: Here, it is given that government collects more tax revenue when there is high GDP and income, while…

Q: Define then three ranges of the aggregate supply curve in the AD/AS framework. Describe the types of…

A: Keynesian range of aggregate supply is nearly flat. So, an increase in aggregate demand increases…

Q: Automatic stabilizers     (a) Are government policies or programs that stabilize the economy…

A: Fiscal policy refers to policy of expenditure and taxes of government. Government makes changes in…

Q: QUESTION 31 What is the main purpose of the automatic stabilizers? O to support social programs when…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: A. Comment on the statement: “Increasing government spending is preferred to a cut in taxes when the…

A: Basic economic analysis shows that increased government spending would be simpler in stimulating the…

Q: The government will have _____ flexibility in implementing countercyclical fiscal policy when the…

A: Answer:  (1). b (More; small) Explanation: The government will have more flexibility when the…

Q: What is one of the net effects of expansionary fiscal policy according to the Neoclassical view?…

A: The answer is - d. Increase of money supply

Q: Policymakers may be better able to achieve their goals using a fixed policy rule rather than using…

A: The policy either being monetary or a fiscal policy that is based upon a predetermined set of…

Q: Active policy making refers to nondiscretionary policy making. relying on policies that act as…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…