Robert Barro critiqued the Obama Administration for crafting policy based on the assumption that the fiscal...

Robert Barro critiqued the Obama Administration for crafting policy based on the assumption that the fiscal multiplier is about 1.5. Barro supposed that “A much more plausible starting point is a multiplier of zero.”5 How do these two different assumptions change the cost-benefit analysis of fiscal stimulus programs? Under what conditions will the Obama Administration be correct in their assumption? Under what conditions will Barro be correct? Who do you think is more correct as it pertains to the US economy today? Why? (Helpful Advice: think outside of the basic models. Craft an economic story.)

Expert Solution

Rahul Sunny answered 2 years ago

Research the 2009 to 2017 Obama administration’s use of fiscal policy and deficit spending in the...

Research the 2009 to 2017 Obama administration’s use of fiscal policy and deficit spending in the face of The Great Recession which began in 2007. Focus only on fiscal policy. Do not include information about other policies such as monetary policy, healthcare, military spending, trade agreements, foreign affairs, etc. Answer the following questions: 1. Describe the main tools of fiscal policy and when it is appropriate to use them. 4. What specific fiscal policy measures did the Obama administration use,...

Do believe that Congress and the former Obama administration or the current Trump administration are responsible...

Do believe that Congress and the former Obama administration or the current Trump administration are responsible for the current Economic situation? Make sure you discuss this in Economic terms.

Fiscal policy is a series of compromises. The Trump administration and congress passed a new tax...

Fiscal policy is a series of compromises. The Trump administration and congress passed a new tax law. In an essay form, describe the main components of the Senate Bill and the House bill (Generate a table) that led to the tax law and discuss the compromises that were made to reconcile the two bills. Additionally, evaluate the implications of the law on the following: Firms Not for profit organizations Rich and poor individuals Students Economy including the deficit-should we worry...

The Obama administration should "really open to change" by decriminalizing illegal drugs. The current administration recognizes...

The Obama administration should "really open to change" by decriminalizing illegal drugs. The current administration recognizes that US is the main market for Mexican drugs: "US demand for illegal drugs is insatiable," Secretary of State Hillary Clinton says. Thus, drugs have to be decriminalized in both the US and Mexico. Use a graph to represent the difference between the US demand and the Mexican demand for drugs.

Externalities. The Trump administration is trying to reverse an Obama administration rule restricting mercury pollution from...

Externalities. The Trump administration is trying to reverse an Obama administration rule restricting mercury pollution from power plants. (Mercury causes brain damage, learning disabilities and other birth defects in children; coal-fired power plants are the major source of environmental mercury.) The Supreme Court required the Obama administration to perform a cost-benefit analysis on the rule and the Trump administration claims that the economic benefits from reducing mercury are less than the costs of cleanup. In making this argument, the administration...

How successful has Obama Administration been regulating the financial system? Why

This is based on the Covid-19 Pandemic. Is there any role that monetary and/or fiscal policy...

This is based on the Covid-19 Pandemic. Is there any role that monetary and/or fiscal policy could play? On this respect, describe one action taken by the Federal Government and one action taken by the Federal Reserve to counter the coming recession. Do you think these actions will be successful? What specific issues are the designed to address? What potential problems do you see with these actions?

This is for the case 19 Deere in Crafting Strategy & Policy 20 edition Your answer...

This is for the case 19 Deere in Crafting Strategy & Policy 20 edition Your answer has to be supported by factual information (show sources) and your analysis. Be clear, specific, and to the point. Assume your readers are the executives of this company Deere. Please do not lecture about the concepts but rather discuss through analysis providing any internet or book sources At the end of each question, summarize and provide conclusions Please answer as many as you can...

3) Fiscal Policy a. What does fiscal policy refer to? b. How could fiscal policy affect...

3) Fiscal Policy a. What does fiscal policy refer to? b. How could fiscal policy affect AD? c. Why would a government use fiscal policy to stabilize the economy ? d. What, specifically, would they do to stabilize? e. What are some of the risks of using fiscal policy to stabilize? f. What are automatic fiscal stabilizers, and how do they affect the budget deficit/surplus?

During the last recession, the Obama administration issued a stimulus package of $787 billion to get...

During the last recession, the Obama administration issued a stimulus package of $787 billion to get the economy through the recession. The stimulus package has 3 main parts: (1) Tax cut for individuals, increased unemployment insurance benefits (2) Spending on health care, education, and infrastructure investment (3) Federal loans and grants for business Explain in word how each stimulus part affects the aggregate demand curve. Hint: - The aggregate demand curve increases when the aggregate quantity demanded increases for all...

Question