Which statement is CORRECT?A) Automatic stabilizers indicate deliberate action by policy makers.O B)Discretionary fiscal policy shows automatic adjustments without any specificeffort by policy makers.C) Discretionary fiscal policy indicates deliberate action by policy makers.Automatic stabilizers are risky tó use and sometimes can get the economyD)destabilized.

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

Which statement is CORRECT? O A) Automatic stabilizers indicate deliberate action by policy makers. O B) Discretionary fiscal policy shows automatic adjustments without any specific effort by policy makers. O Discretionary fiscal policy indicates deliberate action by policy makers. Automatic stabilizers are risky tó use and sometimes can get the economy D) destabilized.

Which statement is CORRECT? O A) Automatic stabilizers indicate deliberate action by policy makers. O B) Discretionary fiscal policy shows automatic adjustments without any specific effort by policy makers. O Discretionary fiscal policy indicates deliberate action by policy makers. Automatic stabilizers are risky tó use and sometimes can get the economy D) destabilized.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the dynamic model of AD-AS in the figure to the right, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue OA expansionary fiscal policy. OB. expansionary automatic stabilizers. OC. contractionary fiscal policy. OD. contractionary monetary policy. OE. expansionary monetary policy. Click to select your answer MacBook Air Price Level 104 100 101 LRAS, LRAS₂ A B 11113AD Real GOP SRAS, SRAS₂ AD₂
If the government were to try to offset surplus years with deficit years over the business cycle, this would result in O A. a reduction in investment capital. O B. a higher debt-to-GDP ratio. OC. an annually balanced budget. O D. a structurally balanced budget. O E. a cyclically balanced budget.
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thanks
please answer b), c), d)
Please do questions D-F. Thanks
Imagine a 45°-line (Keynesian cross) diagram in which the upward-sloping aggregate expenditure curve intersects the 45°-line at point A. The economy is currently in macroeconomic equilibrium at output level Y.. Suppose that the price level increases. If the price level increases, the aggregate expenditures line will shift down The new equilibrium levels of GDP and expenditures will be O A. where the new AE line intersects the 45°-line. O B. unchanged. OC. anywhere on the new AE line ⒸD. where the new AE line interesects the original AE line.
What would happen to output, employment, and the price level if the government increased spending on infrastructure, ceteris paribus? O Output would decrease, employment would decrease, and the price level would decrease O Output would decrease, employment would decrease, and the price level would increase O Output would decrease, employment would increase, and the price level would increase Output would increase, employment would increase, and the price level would decrease. O Output would increase, employment would increase, and the price level would increase Question 2(Multiple Choice Worth 5 points) (03.06 MC) Assume the price level is increasing, real GDP is decreasing, and the unemployment rate is increasing. Which event would explain this macroeconomic situation? OA positive supply shock OA negative supply shock A positive demand shock OA negative demand shock O insufficient data
There answer is not A
Which of the following could be leakage? O A) Marginal Propensity to Consume B) Autonomous Expenditures O c) Disposable Income O D) Marginal Tax Rate
As the economy contracts, transfer payments O fall and tax revenues rise, causing the economy to contract by less than it would in the absence of automatic stabilizers. O fall and tax revenues fall, causing the economy to contract by more than it would in the absence of automatic stabilizers. O rise and tax revenues fall, causing the economy to contract by less than it would in the absence of automatic stabilizers. O rise and discretionary spending fall, causing the economy to contract by less than it would in the absence of automatic stabilizers. Question 11 Which of the following is considered discretionary government spending? O payments to Center for Discase Control (CDC) personnel O infrastructure maintenance spending all responses are correct. funding for the Environmental Protection Agency