2. In 2020, the Australian government as a part of its Covid-related fiscal package made payments to low- income Australians. If you were an economic advisor to the government when that decision was made, would you have supported it? Explain.
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- 21. Which of the following defines a fiscal policy? a.Commercial bank policies to stabilize domestic output, employment, and the price level b.World Bank policies to stabilize domestic output, employment, and the price level c.Central Bank policies to stabilize domestic output, employment, and the price level d.Government spending and taxes to stabilize domestic output, employment, and the price levelDiscuss the federal budget of the U.S government. should it always be balanced? when is the most appropriate time economically speaking for the federal budget be in a deficit? as a borrower how is the federal government different from the average U.S adult?Question 5 What is meant by "a tariff on imports?" Summarize the domestic effect of a tariff on the price of imported goods? Question 6 What is meant by discretionary fiscal policy? Give an example of how the government can use fiscal policy to stimulate consumer spending. (You must use the terms disposable income and demand). Question 7 What is meant by economic growth and why is it one of the most important goals macroeconomists seek to achieve? In your explanation, show the relationship between production, consumption, and investment in periods of economic growth? Question 8 What is meant by the "National Debt?" Explain why the "National Debt" has been both a"benefit and a burden". Give one example showing a benefit and one example that shows the "National Debt" is a burden.
- What is role of the private sector in helping the Filipino government ease its fiscal pressure?'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.3. a. Suppose that in a year when GDP is rising rapidly you also observe theGovernment budget balance increasing. How can you explain this correlation? b. Now suppose instead that in a year when GDP is rising rapidly you also observethe Government budget balance decreasing. How can you explain this correlation?
- 7. The following is information from the national income accounts for Ensperanza Island, a country on the Zambezi Ocean. Figure 1.1 Ensperanza Island GDP К 6000 Gross Investment K800 Net Investment К200 Consumption К4000 Government Purchases of goods and services K1100 Government Budget surplus K30 Use the information in figure 1.1 to answer the following question. Calculate: (i) NDP (ii) Net Exports (ii) Government taxes minus transfers? (iv) Disposable personal income?Suppose there is an increase in budget deficit, what happens to intrest rates and national savings ?The imaginary country of Acordia lists the following projected revenues and outlays for 2020: $30 million in personal income tax, $20 million in corporate income tax, $7 million in indirect taxes, $2 million in investment income, $35 million in transfer payments, $14 million in government expenditures, and $4 million in debt interest. What is the projected budget surplus (or deficit) for 2021? Calculate the amount and indicate whether it is a surplus or deficit.