Econ
I kind of miss use the term fiscal policy to refer to changes in taxing on spending policy
only by the federal government
The corporate income tax rate is increased. this is
part of a contractionary fiscal policy
The individual income tax rate is decreased. This is
part of an expansionary fiscal policy
what is fiscal policy
fiscal policy can be described as changes in government spending and taxes to achieve macroeconomic policy objectives
when the economy is experiencing recession automatic stabilizers will cause
transfer payments to increase and tax revenues to decrease
Congress and the president and act a temporary cut in payroll taxes
A discretionary fiscal policy
which of the following, if true, will strengthen Roma's claim that prices are rising due to an acute shortage of goods in the economy
A severe drought in the countries agriculture belt caused considerable damage to crops and livestock this year
The graph to the right illustrates the static AD-AS model. The government decides to decrease government spending. In the short run this country dictionary fiscal policy will cause
A shift from AD2 to AD1 in movement movement to pointy, with a lower price level and lower output
in the graph of the money market, what caused the money demand curve to shift from MS1 to MS2
Both a and c
The unemployment rate
Decrease the unemployment rate by increasing production
The price level
Increase the price level because more is demanded
defense spending is increased. This is
Not part of fiscal policy
in the graph of the money market, what could cause the money supply curve to shift from MS1 to MS2
The FED decreases the money supply by deciding to sell US treasury securities
Who is responsible for fiscal policy
The federal government controls fiscal policy
which of the following is true will strengthen Emily's claim that the high fiscal deficient is affecting the governments ability to spend
a sizable portion of the tax revenue generated in Dorada is being used to make interest payments on Soviet debt
which of the following is not a correct comparison between an expansionary fiscal policy and the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand an aggregate supply model
all of the above are correct statements about the two models
The revenue the federal government collect from the individual income tax declines during a recession
an automatic stabilizer
What changes should they make it they decide a contractionary fiscal policy is necessary
in this case Congress and the president should enact policies that decrease government spending and increase taxes
if Congress and the president decided expansionary fiscal policy is necessary, what changes should they make in government spending or taxes
in this case, Congress and the president shit in their policies that increase government spending and decrease taxes
Real GDP
increase real GDP by increasing aggregate demand
which of the following raises the largest percent of federal government revenue
individual income taxes
Can we conclude that Congress and the president cut individual income tax rates in 1983
no. It could be that the economy contracted, so less income was earned and less was paid in tax
After September 11, 2001, the federal government increase military spending on wars in Iraq and Afghanistan. Is this in case and spending considered fiscal policy
no. The increase in defense spending after that date was designed to achieve homeland security objectives
The federal government changes the required gasoline mileage for new cars
not a fiscal policy
families are allowed to deduct all their expenses for daycare from the federal income taxes. This is
not part of fiscal policy
The federal reserve lowers the target for the federal funds rate. This is
not part of the fiscal policy
In 2009, was is this piece of legislation an example of fiscal policy
yes, because the primary goal of the spending program was to stimulate the national economy