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- The U.S. government has shut down a number of times In recent history Explain how a government shutdown will affect the variables In the national Investment and savings identity Could the shutdown affect the government budget deficit?Question 5 What is meant by "a tariff on imports?" Summarize the domestic effect of a tariff on the price of imported goods? Question 6 What is meant by discretionary fiscal policy? Give an example of how the government can use fiscal policy to stimulate consumer spending. (You must use the terms disposable income and demand). Question 7 What is meant by economic growth and why is it one of the most important goals macroeconomists seek to achieve? In your explanation, show the relationship between production, consumption, and investment in periods of economic growth? Question 8 What is meant by the "National Debt?" Explain why the "National Debt" has been both a"benefit and a burden". Give one example showing a benefit and one example that shows the "National Debt" is a burden.In an attempt to reduce the large budget deficit, the government raised taxes and reduced government expenditure but unemployment soared and the budget deficit actually increased. A leading economist remarked: 'The time to attempt to reduce the deficit is when the economy is at overfull employment. Then policies designed to reduce the deficit will not only work but they will also achieve other desirable macroeconomic goals.' Do you agree with the economist? Why or why not? Plz do fast asap
- 1. Using the information in this chapter, label each of the following statements true, false or uncertain. Explain briefly. f. An increase in domestic interest rates, all other factors being equal, increases exports. g. A fiscal expansion, all other factors being equal, tends to increase net exports. h. Fiscal policy has a greater effect on output in an economy with fixed exchange rates than in an economy with flexible exchange rates. i. Underafixedexchangerate, the central bank must keep the domestic interest rate equal to the foreign interest rates.21. Which of the following defines a fiscal policy? a.Commercial bank policies to stabilize domestic output, employment, and the price level b.World Bank policies to stabilize domestic output, employment, and the price level c.Central Bank policies to stabilize domestic output, employment, and the price level d.Government spending and taxes to stabilize domestic output, employment, and the price level1. Given the discussion of the effects of fiscal policy in this chapter, if the central bank does not change the policy rate, a foreign fiscal expansion is likely to __________. A. increase foreign output and not change the foreign exchange rate. B. increase foreign output and decrease the foreign exchange rate. C. decrease foreign output and not change the foreign exchange rate. D. decrease both foreign output and the foreign exchange rate. 2.) Given the discussion of the effects of monetary policy in this chapter, a foreign monetary expansion is likely to __________. A. decrease foreign output and increase the foreign interest rate. B. increase foreign output and decrease the foreign interest rate. C. decrease both foreign output and the foreign interest rate. D. increase both foreign output and the foreign interest rate. 3.) Given the discussion of the effects of fiscal policy in this chapter, how does a foreign fiscal…
- 3. Argentina's priority before the COVID-10 crisis should have been to fight inflation and cut its primary deficit by two percentage points by 2018-2020, said the International Monetary Fund (IMF) in a report. The IMF believes that "fiscal rebalancing would need to be based on further reductions in the generous and ill- targeted energy subsidies and on a rationalization of spending in many other areas, including public wages, goods and services, and discretionary transfers to the private sector". The inflation rate fluctuates around 24%. Use the I-S (loanable funds market), the money market to propose some macroeconomic measures that could help to stimulate the economy and fight the high inflation rate.The diagram below shows two budget deficit functions for a hypothetical economy. Budget Deficit (millions of dollars) 14 7.5 4 Real GDP (millions of dollars) 100 200 300 400 500 600 700 Budget Surplus (millions of dollars) Bo B1 FIGURE 31-2 FIGURE 31-2 Refer to Figure 31-2. Initially, suppose real GDP is $100 million and the budget deficit is $14 million, as shown by point A. Which of following vents coul result in a move from point A to point C? A) a fiscal contraction and a decrease in GDP B) a fiscal expansion and an increase in GDP C) a fiscal expansion and a decrease in GDP an increase in GDP with no change in fiscal policy E) a fiscal contraction and an increase in GDP2. What are some of the predicted effects of repealing DACA on the U.S. federal budget? Repealing DACA O A. decreases government receipts and increases the existing federal government budget deficit B. has no effect on the U.S. federal budget because the United States is on the left side of the Laffer curve C. decreases government receipts and decreases the existing federal government budget surplus D. increases government outlays and increases the existing federal government budget deficit
- The US government has recently announced and started to implement a large-scale fiscal expansion to mitigate the negative effects of the coronavirus pandemic and reboot the US economy. The Biden administration argued that this fiscal stimulus policy can rapidly accelerate the economic recovery without triggering high levels of inflation. Suppose the US fiscal stimulus can increase the US aggregate output level. possible effect of this fiscal policy on output and on the trade balance of European countries. And which graph can I useNo. 6 Consider the following equations for this particular economy. C = 100+ 0.75Yd I = 150 G = 250 T = 200 X = 100 Q = 0.25Yd a. What is the equilibrium level of income of this economy? Is the trade balance in deficit or surplus? By how much? b. Suppose there is an increase in government expenditures by 50. What is the effect on the equilibrium level of income? What is the effect on the trade balance? Explain your answers. C. This question is independent of Question (b). Suppose exports increase by 50. Compared to you answer in (a), what is the effect on the equilibrium level of income and on the trade balance? Explain your answers.Suppose that the amount of taxes in the US is equal to $1800. Suppose that the government expenditures is equal to $1800. In addition, you know that the current level of debt in the US is equal to $380000 (all numbers in billions of domestic currency). Given this data, what is the new level of the US's debt? $ Hint ow Transcribed Text $ Suppose that the amount of taxes in Slovenia is equal to 1300. Suppose that the government expenditures are equal to 1700 (All numbers in billions of domestic currency) Given this data, what can you say about Slovenia's budget? What is the size of Slovenia's deficit? Hint ow Transcribed Text 4 3 Consider the following statistics for banking sector in Mexico displayed in the table below (all numbers in billions of domestic currency). Coins and Currency in Circulation Checkable Deposits Traveler's Checks Hint 1400 1 1900 Savings Accounts 8600 Money Market Mutual Funds 500 Time Deposits 600 Using the data above, calculate M2 for Mexico. Use the new…