The discretionary fiscal policy used to stimulate the economy is called ____ fiscal policy. Fiscal policy must be designed to be performed in two ways-by expanding investment in public and private enterprises and by diverting resources from socially less desirable to more desirable investment channels. Which of the following government actions is an example of fiscal policy? By the proper use of fiscal​ policy, the government can, cut income tax rates to get the economy to point B, Suppose the government decreases lump-sum taxes. Which of the following fiscal policy actions will result in the greatest increase in Real GDP? Play this game to review Economics. Two tools for recession, decrease in taxes when the income of consumer decreases and increase in spending. - Definition & Factors, Introduction to Political Science: Help and Review, U.S. Supreme Court Cases: Study Guide & Review, Introduction to Political Science: Tutoring Solution, U.S. Government: Lesson Plans & Resources, GACE Political Science (532): Practice & Study Guide, Ohio State Test - American Government: Practice & Study Guide, Middle Level Social Studies: Help & Review, Introduction to Political Science: Certificate Program, UExcel Political Science: Study Guide & Test Prep, GACE Political Science Test I (032): Practice & Study Guide, American Government for Teachers: Professional Development, Biological and Biomedical Suppose that government undertakes fiscal policy designed to increase aggregate demand from AD 1 to AD 2 and thereby to increase GDP from X to Z.In terms of graph B, which of the following might explain why GDP increases to Y terms of graph B, which of the following might answer! adjustment of government spending and taxes in order to achieve certain national economic goals. Select one: a. t. f. Tags: Question 21 . Spending takes a lot of time to be filtered and it might be already too late – the country is already in recession. Which of the following policies will definitely … So, what actually is fiscal policy again? a. increasing; increasing; decreasing; decreasing b. decreasing; decreasing; increasing; increasing c. increasing; decreasing; decreasing; increasing d. if the discretionary fiscal policy. Which of the following represents expansionary fiscal​ policy? Private Investment is not a fiscal policy tool. Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. Increasing Government Expenditures On Military Hardware B. Decreasing Government Spending On Social Welfare C. Lowering Income Tax Rates D. Decreasing The Quantity Of Money In Circulation Built-in . The "naïve" Keynesian model is unrealistic because it: 7. Study Chapter 16 - Fiscal Policy flashcards from Kristen Graves's class online, or in Brainscape's iPhone or Android app. The political process makes it easy to pass needed actions in times of economic crisis. Which of the following is an example of fiscal​ policy? Which of the following fiscal policy actions would most likely cause a reduction in the size of an inflationary gap? Question: Which Of The Following Actions Is NOT Discretionary Fiscal Policy? C) Increasing social security tax rates. involves specific changes in taxes and government spending undertaken by Congress and the president. 4 comments. Creates grievances and hence uprising. Fiscal policy is a collective term for the taxing and spending actions of governments. answer choices . Recession. A) Decreasing corporate income tax rates. © copyright 2003-2020 Study.com. Which of the following actions does not fall under the category of fiscal policy? SURVEY . Which of the following is not a tool of fiscal policy? Fiscal policy involves discretionary changes in. D. discretionary fiscal policy; automatic stabilizers. There is not as much money in circulation to fuel new investment. Government spending: Taxes: Tax incentives: Private investment (2) Which of the following statements helps to explain why the economy can be slow to recover from a recession? d. It is often difficult for policymakers to know whether policies had any impact on the economy. Which of the following fiscal policy actions would most likely cause a reduction in the size of an inflationary​ gap? Engage in contractionary fiscal policy by raising income taxes. B) Regulating utility prices. Suppose there currently is an inflationary gap. tutorial 12 practice questions: how does fiscal and monetary expansionary policy affect net exports? taxation and spending in an effort to address inflation and unemployment. increasing government spending to deal with a recession. Any help at all is greatly appreciated! Sciences, Culinary Arts and Personal 58% average accuracy. c. An increase in tax. Which of the following government actions is an example of fiscal policy? Increasing Corporate Tax From 25% To 28% Increasing Health Care Benefits For Disabled People Increasing Government Expenditure On Education Unemployment Benefits Increasing Due To A Recession The Government Builds A Tunnel To Connect Two Suburbs. A balanced budget happens in a country when federal spending (expenditures going out) = federal revenue (taxes brought in). $5 million. Edit. is an appropriate way to slow down an​ over-heated economy. Fiscal policy works only during periods of stagflation. 6. Chapter 30 - Fiscal Policy, Deficits, and Debt 134. Which of the following statements illustrates fiscal policy ? According to traditional Keynesian​ analysis, fiscal policy operates by. B. the discretionary changing of government expenditures​ and/or taxes to achieve macroeconomic economic goals. The monetary policy tool in use on a daily basis is A. tax law B. the discount rate C. the reserve requiremnt D. open market operations 31. 0. Become a Study.com member to unlock this Macroeconomics Fiscal Systems DRAFT. 2 Which one can best explain the economic effects of inflation? D. Which of the following is an example of discretionary fiscal policy? Explanation: Discretionary fiscal policy action reveals that government has two tools for economy growing faster.
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