1. The government may follow a 'Transfer Promoting Policy' instead of a 'Growth Promoting Policy' in...

1. The government may follow a 'Transfer Promoting Policy' instead of a 'Growth Promoting Policy' in determining who gets the transfer payment. give an example from the current situation.

2. if the government were to increase government spending (G) Instead of paying transfer (TR), what type of crowding out would you expect? Briefly explain.

3. As we have observed recently that, a lot of the assistance from the government is being misappropriated by dishonest individuals and as a result is not reaching the target population. What role can proper institution play to rectify such mishandling of government fund? Explain.

Solutions

Expert Solution

Rahul Sunny answered 2 months ago

Next > < Previous

Related Solutions

discuss the role of government policy in promoting or retarding economic growth in one of the...

discuss the role of government policy in promoting or retarding economic growth in one of the following “development states” of east or south-east Asia: South Korea, Indonesia, Malaysia

1. Give an example related to the current situation where the government may follow a 'Transfer...

1. Give an example related to the current situation where the government may follow a 'Transfer Promoting Policy' instead of a 'Growth Promoting Policy' in determining who gets the transfer payment. 2.Instead of paying transfer (TR) if the government were to increase government spending (G), what type of crowding out would you expect? Briefly explain. 3. As we have observed recently that, a lot of the assistance from the government is being misappropriated by dishonest individuals and as a result...

(a) Suppose the government passes a policy that declares that welfare, employment insurance, and all transfer...

(a) Suppose the government passes a policy that declares that welfare, employment insurance, and all transfer payments will remain constant regardless of changes in income. Will this policy increase or decrease the volatility (size of the variations in real GDP) of the business cycle? Hint: Consider the concept of automatic stabilizers and the impact of this policy on the multiplier (b) Would this policy increase or decrease the magnitude (size of the effect) of the effects of discretionary fiscal policy?...

One reason the government enacts fiscal policy instead of waiting for the economy to correct itself...

One reason the government enacts fiscal policy instead of waiting for the economy to correct itself is: Question 12 options: the automatic (autonomous) adjustment will cause permanent inflation. the automatic (autonomous) adjustment process involves a lot of economic hardship. the automatic (autonomous) adjustment means a lower level of potential GDP (the natural rate of output). fiscal policy does not affect the composite price level. Fiscal policy most directly affects the economy by increasing or decreasing: the money supply. long-run aggregate...

If the government wants to follow an active stabilization policy when the economy is experiencing an...

If the government wants to follow an active stabilization policy when the economy is experiencing an excessively high rate of inflation then the government should increase the money supply and decrease taxes. Select one: True False If the Fed conducts open-market purchases, the money supply increases, interest rates decrease and aggregate demand shifts to the left. Select one: True False According to supply-side economists, a reduction in the tax rate provides an incentive for people to work more and the...

What is the meaning of this statement? "Government policy determines whether the rate of growth in...

What is the meaning of this statement? "Government policy determines whether the rate of growth in a country's money supply is greater than the rate of growth in output. A government can increase the money supply simply by telling the country's central bank to issue more money." No graphs please. I need a detailed explanation

What is fiscal policy? When the government attempts to generate economic growth through fiscal policy, what...

What is fiscal policy? When the government attempts to generate economic growth through fiscal policy, what are the differences between Keynesian economics (demand creates supply) and Supply-side economics (supply creates demand), and which would be more beneficial now?

Question 1 Most economists agree on the importance of international trade in promoting economic growth and...

Question 1 Most economists agree on the importance of international trade in promoting economic growth and social welfare.Advantages of an open economy include: Increased competition for world producers. A limited selection of products for consumers. Increase market power for world producers. Relatively high wage levels for all domestic workers.

1. In addition, to promoting economic growth which leads to reduced unemployment one of the goals...

1. In addition, to promoting economic growth which leads to reduced unemployment one of the goals of macroeconomic policy are stable prices. Why is stable price levels, the absence of inflation and deflation important? In your answer discuss the impacts of inflation and deflation on savers and debtors and spending.

q11. A contractionary fiscal policy by a government may result in which of the following? An...

q11. A contractionary fiscal policy by a government may result in which of the following? An increased trade deficit a reduction in government borrowing crowding out of private investment lower interest rates q12. How federal government taxing and spending affects aggregate demand is the point of corporate policies. the point of fiscal policy. the point of monetary policy.

Subjects