Government stabilization policy   a. can stimulate aggregate demand, but only in the long run.   b. can stimulate aggregate demand and thereby induce businesses to invest, but the amount is not totally predictable.   c. can stimulate aggregate demand, but investment spending will not be affected.   d. cannot influence investment spending

Q: The U.S. debt problem could be solved, but each solution comes with unintended consequences. For…

A: Answer: Printing more money causes inflation in the economy. As a result, the wages will increase.…

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: Will Increase in government spending financed by borrowing help promote a strong recovery from a…

A: A recession is a period of an economic downturn that is caused due to the depletion of aggregate…

Q: An increase in the government's budget deficit means Options: public saving is greater than $0 and…

A: A government is said to be in deficit when it's revenue is less than its spending. Such situation is…

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: In the presence of reduced consumer confidence, the government can: (Click to select) decrease…

A: Fiscal policies are the measures used by the government to affect the economy. The major fiscal…

Q: Part (a) What is the effect on the domestic economy if such a policy is successful?

A: When the interest-rate(r) of a country is reduced, there is lesser incentive for the foreign…

Q: Analyse the action that government can take to assist the economy during a recession

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: High tax rates that put money into the government's funds tend to slow spending, and ultimately slow…

A: Tax: The word tax refers to the compulsory payment which is imposed by the government. It is also an…

Q: Which of the following events is most responsible for the Great Recession of 2007 to 2009? Select an…

A: "Recession is a prolonged period of economic downturn." When recession occurs economic variables…

Q: Column A: Objective for Aggregate Demand Write increase or decrease if you wish to increase or…

A: From the above table shown, we have to give correct answers in the column shown above by assuming…

Q: True or False: a. Federal spending has grown substantially in recent decades. b. By world standards,…

A: Public expenditure means that the public economy 's funds expended on the procurement of products…

Q: Use the given scenarios and the information you have learned about Fiscal and Monetary policy to…

A: Monetary and fiscal policy are both macroeconomic tools for managing or stimulating the economy.…

Q: When the economy gets into serious problems, the government has two policies that offer the…

A: Equilibrium occurs at the intersection of AD and AS. If the equilibrium level of GDP is less than…

Q: please answer the following question: 1. Suppose an economy is slowing and more and more people…

A: "In an economy which is slowing down, the nation's government make use of fiscal policy to stimulate…

Q: a. What are the fiscal policy tools the government can use to expand an economy that is in a…

A: Monetary policy and fiscal policy are tools of the government that helps to achieve the objective,…

Q: Classical economists believed in raising the budget deficit to cure inflation. O True O False

A: The statement is false

Q: Which of the following owns the largest proportion of the national debt?

A: The national debt is the total public debt held by the US Federal government which is the amount of…

Q: The government runs a large budget deficit (and nothing else changes): a)Inflation stays the same…

A: Budget deficit refers to a situation when the government has outlined the budget and its division…

Q: Insert the missing word or phrase: Persistent budget deficits have long-run consequences because…

A: The budget deficit occurs when the government's revenue falls short of the expenditure. When the…

Q: from the news article…

A: Aggregate demand is the total demand of all the goods and services produced in an economy. Aggregate…

Q: its budget. What happens this year if the government announces that it will increase its spending or…

A: A budget is a financial plan for a specific amount of time, usually a year. It may also include…

Q: The economy goes into recession. Which of the following lists contains things policymakers could do…

A: Recession is the continuous decline in the economic activity of a country in which the output,…

Q: Which answer choice represents a fiscal policy rather than a monetary policy? A lowering the money…

A: Option C is a Fiscal Policy measure. Rest all three are Monetary policy measures. Monetary policy…

Q: Policymakers should reduce spending and increase taxes when the economy is growing in order to…

A: Hi.  Since there are multiple questions we will answer only the first three questions.

Q: Calculate Ecoland’s real GDP in 2018, i.e., GDP measured in 2014 $. (b)   How much do households…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which type of policy – fiscal or monetary - do you feel was most impactful 2020? Why?

A: We show that Both monetary ànd fiscal policies are growing naturally as they will focus on…

Q: In the short run, the increase in investment spending due to the new tax credit shifts the aggregate…

A: The AD-AS model shows how total demand and total supply interact at the macroeconomic level.

Q: Question : If The new Vice Chancellor has asked you for advice on whether she should consolidate or…

A: With the rise on the number of students in the undergraduate course The Marginal cost for…

Q: An ..... in ...... raises income in the short run and .....  in the long run. (Choose one or More)…

A: The money supply rises through the expansionary monetary policy, this action is taken by the central…

Q: Fiscal and Monetary Policy Assignment When the economy gets into serious problems, the government…

A: Answer D. Monetary policy refers to central bank actions aimed at influencing the amount of money…

Q: Give short answer Fiscal and Monetary Stimulus.

A: Any type of stimulus is needed to boost the economy when economic growth slows down. There are two…

Q: it a good policy for the government to create budget deficit?

A: Budget deficit = expenditure is more than revenue.  In today's time, government's function in a…

Q: The government runs a large budget deficit and the central bank conducts OMO purchase to buy the…

A: Meaning of Budget Deficit and Fiscal Deficit: The budget deficit (also recalled as government…

Q: 11) If the investment demand curve is almost horizontal, A) both monetary and fiscal policy are…

A: horizontal investment demand curve shows no change in quantity demand even if change in price level.…

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.