To lower output, the federal government engages in _____ fiscal policy, which _____ government spending and _____ taxes.​ options:  a) expansionary; lowers; raises  b) contractionary; raises; lowers c) expansionary; raises; lowers  d) contractionary; lowers; raises..

Q: Expansionary fiscal policy uses government spending and taxes to increase aggregate economic…

A: Fiscal policy is undertaken by the government. It uses government spending and taxes to affect…

Q: 2. Is each of the following policies an example of expansionary or contractionary fiscal policy?…

A: The government's income and expenditure plans are referred to as its fiscal policy. When the…

Q: Explain the concept of Fiscal Policy

A: Definition of Fiscal Policy: Fiscal policy is a policy of government to control the economy through…

Q: How will Expansionary Fiscal Policy affect the Federal Budget? A budget surplus will decrease the…

A: An expansionary fiscal policy is a policy that means there is more money supply in the economy.

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

A: The fiscal policy refers to the government policy of expenditure and taxes. The change in government…

Q: discuss the economic implications of  Joe Biden’s fiscal stimulus for the US economy and the…

A: The economies around the globe are focused on their development and growth in various areas. The…

Q: What is fiscal policy? What are the tools of fiscal policy? Discuss the impact of expansionary…

A: Fiscal policy:A government's use of taxation and expenditure to affect the economy is known as…

Q: Describe the difficulties that can arise in implementing fiscal policy.??

A: Fiscal policy is known to be the policy in which the government uses three instruments which include…

Q: Assume the economy is operating at less than full-employment output and the federal budget is…

A: Economy is said to be at the full employment level when all the factors of production are…

Q: . An increased federal budget deficit during a recession serves as an automatic       economic…

A: The federal budget is an itemized plan for the United States' annual public expenditures. It is used…

Q: Suppose that you are a member of the Council of Economic Advisers. The president has asked you to…

A: The COVID-19 has contributed to worsening economic conditions in the United States and around the…

Q: 1) Define MPC(marginal propensity to consume) and MPS(marginal propensity to save) 2) Define…

A: Since you have posted multiple independent questions in the same request, we will solve the first…

Q: In X-Men town the federal government must run a balanced budget. The town is currently in They might…

A: Fiscal policy is the tool of the government through which the govenrment alters the aggregate demand…

Q: Suppose this economy is in long-run equilibrium, as shown in the graph. Consider an exogenous…

A: Is lm model shows the two markets in equilibrium one is goods market which represents by IS . Each…

Q: CONTRACTIONARY FISCAL POLICY GOV SPENDING 30% TAXATION tha t 70% How will Contractionary Fiscal…

A: Contractionary Fiscal Policy refers to decrease in government spending or increase in taxes in an…

Q: If the effects of expansionary fiscal policy are delayed by recognition, implementation and impact…

A: Expansionary fiscal policy refers to the one that is implement to stimulate aggregate demand to…

Q: Classify each statement based on the type of fiscal policy to which it refers. answer bank in image…

A: Expansionary fiscal policy: Expansionary fiscal policy refers to the situation where the government…

Q: An expansionary fiscal policy can increase the level of aggregate demand by decreasing government…

A: An expansionary fiscal policy can increase the level of aggregate demand by  reducing corporate tax…

Q: Suppose the economy is in a recession.  To combat the recession, Congress has decided to allocate $1…

A: A recession is a temporary period of economic slowdown, generally defined as  a fall in GDP over two…

Q: _____ are elements of fiscal policy that automatically change when income changes.   a. Budget…

A: Fiscal policy is one of the tools of the government to influence macroeconomic conditions such as…

Q: Expansionary fiscal policy refers to the​ ________ to increase real GDP.     A. Federal​ Reserve's…

A: Expansionary Fiscal policy is the policy of the government where government increases government…

Q: For each of the separate scenarios, discuss the associated shortcoming of fiscal policy: After an…

A: In an economy, fiscal policy is the one that is developed and implemented by the government, but it…

Q: One possible fiscal policy solution for a recessionary gap would be O to cut taxes. O to raise…

A: Fiscal policy is a policy used by the government to stabilize the economy from economic ups and down…

Q: 11.1 Due to the pandemic, the federal government announced many measures to help those negatively…

A: Government undertakes fiscal policy to maintain output and inflation in the economy. It refers to…

Q: Assume the United States has been in another recession for the past 10 months. Unemployment is 10%…

A: The AD-AS (aggregate demand-aggregate supply) example demonstrates national income determination and…

Q: During a recession, the government decides to give an additional child tax credit to households of…

A: Recession occurs when there is a fall in the aggregate demand in the economy. The fall in the…

Q: How will a contractionary fiscal policy affect a budget deficit? A.) Debts will…

A: Budget deficit refers to the amount of expenditure of a government that surpasses/exceeds the total…

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: Which of the following is an example of contractionary fiscal policy? A. Cutting spending B.…

A: Fiscal policies are managed/controlled by the government of the country whereas monetary policies…

Q: 10. Describe the characteristics of fiscal policy from 2000 to 2018. a. From 2000 to 2004, fiscal…

A: since you have asked a multipart question and according to our policy we can only solve the first 3…

Q: |An economy is in a below​ full-employment equilibrium.   What is the effect on aggregate demand and…

A: The full-employment level is the situation when an economy is able to reach its potential output…

Q: Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

Q: discuss the Fiscal policy of Demand Side and Market-oriented and Interventionist policies of the…

A: Interventions: It refers to the government process that helps the market failure to get clear. It…

Q: discuss whether or not fiscal policy is an effective tool for the federal government when the…

A: The policy that makes use of taxation and spending of government in order to influence the economy…

Q: A government increases the corporate tax rate from 15 to 17% in an economic recession. Fiscal policy…

A: Fiscal policy can be of two types, procyclical and anticyclical.

Q: Expansionary fiscal policy occurs when the government increases __________, decreases __________, or…

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

Q: Which of the following could NOT be contractionary fiscal policy tool? OA) decreasing government…

A: Decreasing taxes is an expansionary economic policy tool, not a contractionary one. Contractionary…

Q: Explain fiscal policy and its role in stabilizing economies during recessions.

A: Fiscal policy is an instrumental component in the hands of legislatures to influence a country's…

Q: Suppose the economy begins at full employment. Label this starting point as point "1." Then,…

A: The term macroeconomic policy refers to economic policy that focuses on accomplishing specific…

Q: Crowding out effect refers to government fiscal policy tools affecting _____? A. private spending B.…

A: Crowding out is the elimination of spending of some private spending due to increase in public…

Q: Which of these is MOST LIKELY to occur after the government increases taxes?   A.) Consumer…

A: When taxes are increased, consumers' spending reduces as disposable income falls. Consumers are left…