Suppose that you are a member of the Council of Economic Advisers. The president has asked you to prepare a statement on the question, "What is the proper fiscal policy for the next 12 months?" Pre-pare such a statement, indicating (a) the current state of the economy (that is, the unemployment rate, growth in real income, and rate of inflation) and (b) your fiscal policy suggestions. Should the budget be in balance? Explain the reasoning behind your suggestions.

Q: Which of the following are consistent with Contractionary Fiscal Policy O Lower Government Spending…

A: find below the answer.

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Q: Which fiscal policy would be the most contractionary? a $100 billion decrease in government spending…

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Q: A governor presents an exparsionary fiscal plan to stimulate production throughcut the state. Which…

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Q: effectiveness

A: Fiscal policy is the use of government spending and tax policies in order to influence economic…

Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Contractionary fiscal policies do not necessarily decrease a country's debt-to-GDP ratio because O…

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Q: Assume MPC=0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Round…

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Q: Bldentify the impact that each of the following changes in fiscal policy woula have on the level of…

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Q: In what ways do future generations benefit from this generation’s deficit spending?  Cite three…

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Q: Suppose, the Australian economy is in good shape (operating at its productive capacity Y*). However,…

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A: Introduction  Fiscal policy has known as budgetary instrument of government policy. It influences…

Q: Council Economic Advisers (CEA)

A: The Council Economic Advisers[CEA] consist of three members. The Chairperson, who is appointed by…

Q: Which one of the following statements regarding fiscal policy and the budget is   correct?(a) When…

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Q: Suppose that the economy is in a recession as a result of a fall in investment spending and real GDP…

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Q: Assume the government makes no fiscal policy changes when the economy experiences a downturn. Which…

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A: The value of MPC can be calculated as follows. The value of MPC is 0.883721.

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Q: and

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Q: What are the automatic stabilizers in the fiscal policy? How does fiscal policy destabilize the…

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Q: ist the 3 major economic goals of fiscal policy.   Who is responsible for fiscal policy?

A: Since you have multiple questions, I would be answering the first two. If you want any specific…

Q: Algonquin's equilibrium price level and real output? The initial equilibrium price level and real…

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Q: Which of the following would be classed as an expansionary fiscal policy? An increase in the money…

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Q: In mid-2001, the Bush administration won congressional approval for lower income tax rates. One…

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Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

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Q: What are problems that governments may encounter in enacting and applying fiscal policy? Explain the…

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Q: discretionary fiscal policy and nondiscretionary or built-in stabilization policy.

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Q: By using graphs, show and explain the effects of an expansionary fiscal policy on the goods market…

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Q: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in…

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Q: Assume MPC 0.75. If an initial fiscal restraint of $100 billion is desired, by how much must Round…

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Q: Outline the supply-side view of fiscal policy. How does this view differ from the various…

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Q: Explain how the implementation of this policy is related to the simple spending multiplier. Explain…

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A: a and d would be opposed to tax cut.

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.