What are problems that governments may encounter in enacting and applying fiscal policy? Explain the effectiveness of the recent U.S. fiscal policy.

Q: (2./The accompanying diagram shows the current mac- roeconomic situation for the economy of…

A: The central bank conducts the monetary policy by adjusting the money supply by conducting open…

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

A: Public deficit: It refers to the situation in which government expenditure exceeds its revenue…

Q: Explain how the fiscal policy tools used by the federal government should work in terms of fighting…

A: There are two tools of fiscal policy of any country. First is expenditure and second is taxes.…

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: Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. How…

A: Fiscal Policy:Fiscal policy is the tool of government through which it maintains the economy of a…

Q: As we emerge from the pandemic, your friends are concerned with the rising prices they're…

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: 1) Distinguish between discretionary and nondiscretionary fiscal policy.

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

Q: Which of the following is a true statement in reference to the national debt? a. It is almost…

A: 4. The answer is - e. As a percentage of GDP, it has steadily grown since World War II.

Q: Instead of paying transfer (TR) if the government were to increase government spending (G), what…

A: The transfer payment is described as government payments to the individual by social programs like…

Q: Discuss Expansionary Fiscal Policy. Who is responsible for implementing fiscal policy? What may be…

A: Policies are created by the government in order to keep the economy on track and ensure economic…

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

A: (a)Following below is the graph depicting the aggregate demand level during recession: From the…

Q: Identify and describe some practical difficulties of discretionary fiscal policy and use examples…

A: The deliberate policy action that is taken by the government when there is a problem. So the policy…

Q: Fiscal policy is used not only to influence economic activity but also for political purposes.…

A: Government fiscal policy refers to the expense that a government needs to provide goods and services…

Q: The government's budget surplus in Macroland has risen consistently over the past five years. Two…

A: Please find the answer below.   FISCAL POLICY: Fiscal policy refers to the governmental use of…

Q: What are the implications of fiscal administration in the economy? Cite at least three significance.

A: Fiscal administration: Fiscal administration is the process of administrating the fiscal policy…

Q: Suppose that in 2005 the government collected $240 billion in tax revenue and spent $270 billion,…

A: The budget is said to be balanced when the tax revenue is equal to the government spending. A budget…

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: What specific fiscal policy tools would you use to stimulate aggregate demand and how? also include…

A: Fiscal policy tools use to stimulate aggregate demand:To stimulate the aggregate demand, the fiscal…

Q: Some Economists argue that Fiscal policy have no effects in the long run on employment and aggregate…

A: There are various responsibilities of government and central bank towards the economy. The overall…

Q: What is Fiscal Administration as you have understood in this module.

A: Public Fiscal Administration, by and large, alludes to the cycle/is associated with the income age,…

Q: Describe the roles of government bodies that determine fiscal policy. Explain fiscal policies’…

A: The role of government bodies that determine fiscal policy are as follows: The government fiscal…

Q: Critically explain why governments use the expansionary fiscal policy.

A: The policies which have an influence on the economy, when the government adjusts its spending amount…

Q: Which of the following sources of revenue is used to fund government spending? A) corporate…

A: Government expenditure is the amount of money allocated by the public sector for the acquisition of…

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

A: 1) An expansionary fiscal policy will be better suited for the scenario of rise in natural rate of…

Q: Refer to the accompanying table for Waxwania.   Government Expenditures, G Tax Revenues, T Real GDP…

A: Average tax rate = (Tax paid / Taxable income) => Average tax rate = (Tax revenue / Real GDP)…

Q: Explain 3 ways the Canadian Government might use fiscal policy to attempt to stimulate an economy…

A: Expansionary Fiscal policy is used as a means to shift the aggregate demand curve outwards during…

Q: Explain the 3 features of ideal fiscal policy?

A: The use of government spending and tax policies to impact economic conditions, notably macroeconomic…

Q: ifference between keynesian and supply-side fiscal policies.

A: Fiscal policy is the strategy that is made by the government to change the money supply in the…

Q: What is the impact of using Fiscal policy tools on an economy - more specifically aggregate demand…

A: The aggregate demand is the aggregate demand of all the goods and services produced in the economy.…

Q: The U.S. is in a recession due to decreased Aggregate Demand in the economy. Should the government…

A: When there is a financial crisis in the economy or a rise in interest rates, fall in the prices of…

Q: Explain the relationship between the effectiveness of monetary policy and the interest elasticity of…

A: Interest elasticity of money demand shows the change in Money demanded due to change in interest…

Q: Complete the following sentence. As it relates to fiscal policy, a budget deficit exists when:Choose…

A: Fiscal policy measures the effectiveness of government budgets in an economy. This includes…

Q: Explain the difference between the headline fiscal deficit and the primary fiscal deficit. Which one…

A: Headline fiscal deficit Vs the primary fiscal deficit 1. The primary deficit is the amount of…

Q: Explain how the two main tools of fiscal policy can be applied by a government in the…

A: "Government make use of fiscal policy in order to stabilize a country's economy. Government while…

Q: 1. What is fiscal policy? 2. What are the shortcomings of fiscal policy? 3. What is supply-side…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

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

A: In the Supply- side view, the output of the economy is stimulated to increase by increasing the…

Q: Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $160…

A: The level of a budget deficit is the level that refers to the excess spending of the government as…

Q: 2. Considering the recent pandemic situation, Consumers fear a recession, they start reducing…

A: An expansionary fiscal policy will most effective in this case. The two major examples of…

Q: Why did some governments feel that they had to introduce “austerity” fiscal policies soon after the…

A: A Fiscal Policy is an instrument of the government and reefers to the use of government spending and…

Q: Suppose that in 2012 the government collected $320 billion in revenue and spent $380 billion, while…

A: Additional deficit on 2012 =$320- $380= -$60 billion

Q: List and discuss the

A: Fiscal policy is the utilization of government spending and taxation to influence the economy.…

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.