Explain the differences between typical demand side fiscal policy
and supply side fiscal policy. For each of the following fiscal
policy proposals, determine whether the primary focus is on
aggregate demand or aggregate supply or both. A 10% reduction in
all tax rates both for businesses and individuals
Every country has THREE (3) main macroeconomic policies, namely
monetary policy, fiscal policy and supply side policy. 4.1 Using a
country of your choice critically evaluate how the THREE (3) main
policies can be used to achieve low unemployment. Motivate your
solution with practical examples 4.2 Discuss the various
type(s) of unemployment and substantiate which type of unemployment
is being experienced to a larger extent in your country.
1. Discuss the effects of fiscal and monetary policy on
inflation. Illustrate with good examples
2. You have AED 1000 as a cash money and AED 500 in traveler's
checks. Also, you have AED 1000 in checking account at Dubai
Islamic Bank. At the same bank you put AED 5000 in savings account.
Based on this information illustrate how you can change your M1 and
M2.
What is the goal of supply side policy? Describe how
deregulation works as a supply side policy tool. Why is it unlikely
that we will now allow more pollution into the environment?
39.
Supply-side fiscal policy
includes increases in government employees’ pay and individual
tax breaks.
has been proven not to work.
has immediate effects on aggregate supply.
takes time to affect aggregate supply.
is emphasized as a short-run solution to growth problems.
41.
How is it that the banking system is able to lend by a multiple
of its excess reserves?
Banks are required to hold only enough cash to meet the
withdrawal needs of depositors.
Loans can be made to...
The third-party effects or side-effects (positive or negative)
of a transaction between two parties (e.g., doctors and patients),
which is not reflected in the cost of the goods or services
involved, and which offer a rationale for government provision of
social insurance like Medicare and Medicaid are called
externalities
merit goods
private goods
public goods
excludabilities
Describe the roles of government bodies that determine fiscal
policy. Explain fiscal policies’ effects on the economy’s
production and employment. How does the enormous U.S. national debt
affect the federal government’s fiscal policy? Is the current U.S.
national debt a serious problem like a heavy personal debt? Why or
why not? Discuss thoroughly.
Present a thorough analysis of fiscal policy. Detail the effects
of discretionary fiscal policies, the various policy levers, the
impact of crowding out, time lags, and automatic stabilizer. Please
cite sources!
Describe the roles of government bodies that determine fiscal
policy. Explain fiscal policies’ effects on the economy’s
production and employment. How does the enormous U.S. national debt
affect the federal government’s fiscal policy? Is the current U.S.
national debt a serious problem like a heavy personal debt? Why or
why not? Discuss thoroughly.