Why do price levels increase when the government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?

Q: Governments closely monitor the growth and contraction of their economies in order to manage the…

A: Hey, Thank you for the question. According to our policy we can only answer 3 subparts per question.…

Q: Why should the government try to help the economy and support it? Give at least two reasons.

A: A government plays a significant role in influencing the market outcome and to make changes in the…

Q: State what economic policies (fiscal AND monetary) should be enacted to stabilize the economy in…

A: Monetary Policy refers to the policy the action taken by the central government of the country to…

Q: Describe the short-run and long-run implications to the economic climate if the government in Mexico…

A: The GDP has one major drawback which results in the fact that the GDP does not include the…

Q: what is the effect of opening the economy during the pandemic? how can policies impact this?

A: what is the effect of opening the economy during the pandemic? Answer: Opening of the economy during…

Q: What is the best combination of fiscal policies and monetary policies for a country like Japan whose…

A: When the price levels in an economy remains high over a period of time it is considered as…

Q: What policy might the federal government implement with regard to taxes and spending to help stop…

A: Fiscal policy refers to the changes in the federal government purchases and taxes, which are…

Q: If government increases spending and wants to maintain a balanced budget, it should

A: The answer is as follows:-

Q: Does the public's expectation of a policy influence its effectiveness?

A: Answer: Yes, the public expectations of a policy influence its effectiveness. People form their…

Q: Define the following: a. Policy lags b. Recognition lag c. Implementation lag d. Response lag

A: a. Policy lag: Policy lag refers to time delay that is the time difference between the execution of…

Q: Describe the public policy cycle? Support your answer with examples.

A: The course of public approach has various stages which communicate in a powerful manner:…

Q: Explain how the covid -19 virus pandemic has affected  the united states economy.

A: Covid-19 stands for Coronavirus Disease which started in 2019. This diseases has affected most of…

Q: Consider the first two principles of economics: Choose one of them and state it. Then discuss an…

A: The principle which I have chosen is  "People face trade-offs"  Nothing is free in this world.…

Q: he two types of national policies that influence the national economy are_________ policy and…

A: The answer is solved given below

Q: Why would a Monetarist advocate a balanced budget amendment to the Constitution?

A: The monetarist school of economic thought is an important one amongst the different schools of…

Q: Using appropriate examples, clearly demarcate between fiscal and monetary policies.

A: Both fiscal and monetary policies are important methods through which policymakers aim to affect the…

Q: When the price level falls   households want to lend more, so the interest rate rises making the…

A: Demand is done by the consumers at given prices during given duration. Supply is done by the…

Q: Since Biden took office in January, based on your broad understanding of U.S. foreign policy (from…

A: U.S. foreign policy refers to the collection of principles and techniques that guide the country's…

Q: Predict how each of the following economic changes will affect the equilibrium price and quantity in…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: To combat recessions and depressions, which should have priority: unemployment or debt reduction?…

A: Definitions: Depression is a prolonged downturn in the economy, while the recession is a temporary…

Q: Describe a situation in an economy that John Maynard Keynes would believe needs government support.…

A: John Maynard Keynes was the well-known economists whose theories and models are still studied and…

Q: fiscal policy or monetary policy, is preferable for recessions (

A: Recession refers to significant decline in economic activities, the economic measures and growth as…

Q: At which point would the government be most likely to try to stimulate the economy

A: Government: It refers to the people who focus on the growth of the economy. The government helps…

Q: Describe some government intervention in the economy with the intent of controlling prices. Identify…

A: Government intervention is defined as any action taken by the government that affects the market…

Q: During the past five decades, there has been a shift in the composition of the federal budget toward…

A: The government budget represents the spending plans of the government of an economy for a given…

Q: Which firms and industries have benefited from Reagan’s policy change and why?

A: Reagan’s policy address the supply side of the economy. The policy promised reduction in income tax…

Q: Why are budget cuts a good thing?

A: A budget cut refers to a decrease in the amount of a budgeted expenditure within a government or a…

Q: What problem with the policy is being talked about here? Explain your answer with an AD-SRAS-LRAS…

A: Here from all the given conditions above, it is talking about the tight monetary policy the banks…

Q: Government is considering a policy change to stimulate the economy by encouraging private…

A: Government is considering a policy change to stimulate the economy by encouraging private…

Q: In the country of Mordor, the government spent $100 million on swords. Prices do not rise at all,…

A: Marginal propensity to consume (MPC) is the ratio of the change in consumption (∆C) to the change in…

Q: Identify and define the two branches of economics

A: Economics:- Economics can be defined as the subject that studies the production, consumption and…

Q: How is it possible to bear a cost without realizing it? What are some examples of policies that…

A: Costs are the expenses one has to incur either in the production activities or during the purchase…

Q: Assume the self-correcting economy's criteria, and predict the possible consequences of rent…

A: If rent decreases, then the income of land owners will decrease as a result. Hence, national income…

Q: How is fiscal and monetary policy used by the Canadian government if the economy seems to be…

A: When the economy is slipping into recession the government needs to implement an expansionary fiscal…

Q: The three main objectives of the national economy are price stability, full employment, and economic…

A: Fiscal policy is the term used to describe the way in which the government manages the amount of…

Q: Is the Coronavirus Stimulus Package fiscal policy, monetary policy, or both?

A: The monetary policies are those policies that are enacted by the central bank of a country to…

Q: In the country of Mordor, the government spent $200 million on swords. Prices do not rise at all,…

A: In this problem, we are tasked with determining what percentage of every dollar people in the…

Q: A certain government's program is funded by borrowing funds, do you think it is advantageous in the…

A: Government debt, also known as public interest debt, public debt, national debt, and sovereign debt…

Q: Some reject stimulus measures and all current policy forms. These economists Focus on the damaging…

A: The private sector market structure is an economic model in which individuals, private corporations,…

Q: How will cuts in state budget spending affect federal expansionary policy?

A: Expansionary fiscal policy refers to an increase in the federal government purchases and or a…