e news headline "Consultants replacing high school counselors" deals with the A. how B. what and for whom C. why D. what and how E. for whom questions of economics. ne news headline "The government must cut its budget deficit by increasing taxes" deals with the OA. what and for whom OB. for whom OC. what OD. what and how DE. why The news headline "Asteroid mission canceled" deals with the questions of economics. questions of economics

e news headline "Consultants replacing high school counselors" deals with the A. how B. what and for whom C. why D. what and how E. for whom questions of economics. ne news headline "The government must cut its budget deficit by increasing taxes" deals with the OA. what and for whom OB. for whom OC. what OD. what and how DE. why The news headline "Asteroid mission canceled" deals with the questions of economics. questions of economics

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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Similar questions

Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
What are some of the ways fiscal policy might encourage economic growth?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
"The United States has the world'slargest fiscal deficit in total USdollars." Could anything be changedin this statement to correctly evaluatewhether the United States has a fiscaldeficit problem? a. We need to know how large theUS debt is already. b. Deficits should be expressed asa per cent of GDP to correctlyevaluate them. c. All of the information givenhere is necessary to correctlyevaluate whether the UnitedStates has a fiscal deficitproblem. d. We need to know whether thedeficit has occurred during aninflationary gap or arecessionary gap.
learn-us-east-1-prod-fleet01-xythos.content.blackboardcdn.com Bb https://.. a SD Bb Bb Bb 1. From the time of George Washington's presidency to the present, the percentage of the average American's income that goes to pay taxes A. has decreased from about 20 percent to about 10 percent. has decreased from about 50 percent to about 25 percent. C. has remained constant at about 10 percent. D. has risen from less than 2 percent to above 45 percent. Е. В. has risen from less than 5 percent to above 25 percent. 2. According to the textbook, which of the following statements is (are) correct for the United States? (x) The individual income tax and the payroll tax are the two largest sources of revenue for the U.S. federal government. (y) Corporate income taxes and excise taxes make up more than 30 percent of the tax revenue for the U.S. federal government. (z) In general, the two most important taxes for state and local governments in the U.S are sales taxes and property taxes. А. (x), (y)…
Explain fiscal policy and give an exmple of how it could be applied to the current COVID situation in the United States.
9. Why do Social Security and Medicare pose problems for the federal government budget? The number of workers who can pay for the retirees is increasing. O Payroll taxes are capped and cannot be raised. O The number of retirees is decreasing. The number of sick people is rising too quickly. O Life expectancy of retirees is increasing. 10. Why do Social Security and Medicare pose problems for the federal government budget? The number of people retiring is increasing. The number of workers who can pay for these retirees is increasing. Life expectancy is decreasing. The number of sick people is rising too quickly. Social insurance taxes cannot legally be raised any further.
When Amy's income increased her average tax rate decreased trom 20 peroent to 15 percent. When Alice's income increased. her average tax tate increased hom 20 percent to 2 percent When Juke's income incremed, his average tax rate didn't change Ives in an economy witha pgressive ta ystem pays a proportional te and lives in an economy with a regressive ta ystemm OA. Ale Ay Jake 0B Amy Alice Jake OC. Alce, Jake, Amy O D. Jake, Amy Alice
Consider the state of the economy during the COVID Pandemic. To improve the performance of the economy we can expect Congress to: O reduce the size of the budget deficit. O increase government purchases. O decrease transfer payments. O increase taxes. « Previous Next » ASUS 15 LEGO & 5 6 7 8 R
'The U.S., world's largest economy, went into recession in February of 2020. It has taken a broad range of steps to combat the economic disruption caused by COVID-19. In response to this crisis, governments have enacted sweeping and sizable fiscal stimulus of trillions of dollars.' Is it an appropriate policy response if the primary responsibility of the government is to maintain economic growth? Explain the significance of Fiscal policy for an economy? Is there any difference in the two approaches of fiscal expansion through - direct transfer benefit and government spending directly on purchase of goods and services that may influence real GDP? What role does multiplier play? Explicate. Support your answer with the suitable diagram/s.
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 GDP
Which of the following is NOT a tool of fiscal policy. O taxes O government spending Onterest rates none of the above Question 2 Assume the economy is in a deep recession. The appropriate fiscal policy response would be to: raise taxes and raise govemment expenditures cut taxes and cut govermment expenditures raise taxes and cut government expenditures O cut taxes and increase government expenditures D Question 3 Crowding out refers to the fact that: Tax cuts will cause inflation O Tax cuts may result in higher interest rates which will "crowd out" business investment spending O increased government spending will crowd out spending on imports none of the above