What is fiscal policy? What are the tools of fiscal policy?
Discuss the impact of expansionary...
What is fiscal policy? What are the tools of fiscal policy?
Discuss the impact of expansionary fiscal policy and specifically
the fiscal policies used during the Great Recession of 2008-2009 on
operation of business operation.
Discuss what monetary policy is. Discuss different instruments
of monetary policy. Discuss the impact of expansionary and
contractionary monetary policy, specifically the change in interest
rate and credit availability, and the process by which these
changes impact business’s decision making process.
1. Fiscal Policy
What is fiscal policy? Is the President and Congress currently
running expansionary fiscal policy or contractionary fiscal policy?
Why? Visit the Congressional Budget Office and report a project
that could impact the budget (search topics then pick an area that
you find interesting and may even talk about the COVID-19 as
well).
- What are the tools used in the Fiscal Policy?
What are the tools used in the monetary policy?
What are the tools the FED use to control money supply?
define expansionary fiscal policy and explain:
(1) when the government uses expansionary fiscal policy, (2) its
possible negative impacts (3) why it doesn't always work as
intended, and (4) why it sometimes can be destabilizing for the
economy.
What is the business cycle? Explain.
What is fiscal policy?
What are the tools of fiscal policy?
Explain how fiscal policy can be used in a recession and provide
an example from our recent economic history.
Define fiscal policy and the fiscal policy tools used to
regulate the economy. What is countercyclical fiscal stimulus?
Discuss the concept of crowding-out. What are automatic stabilizers
and how do they affect the economy.
Interpret recessionary and expansionary gaps within the
economy.
Explain the inter-workings of fiscal policy tools.
State how taxation and government spending works.
24. Effective fiscal policy to correct for an expansionary gap
willa. only reduce the price levelb. only reduce real GDPc. only increase the price leveld. only increase real GDPe. reduce both the price level and real GDP25. How much would government purchases have to change to
increase RGDP $1,000,000,000 if MPC were 0.9?a. $100,000b. $100,000,000c. $10,000,000d. $1,000,000e. 1,000,000,000
Explain thoroughly when an expansionary fiscal policy is
appropriate and when a contractionary fiscal policy is
appropriate.
Explain the three fiscal policies that can be used in
expansionary fiscal policy. Each policy must come with
an example.
Explain the three fiscal policies that can be used in
contractionary fiscal policy. Each policy must come with
an example.
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