When the economy is in recession-expansionary fiscal policy

Assignment Help Business Economics
Reference no: EM131094553

When the economy is in a recession, expansionary fiscal policy can be used to stimulate and encourage economic growth. Which of the following scenarios represent expansionary fiscal policies from both a supply and demand perspective at the same time? When choosing the answer, please look for if it meets three description, expansionary, fiscal policies, and involving both the supply side and the demand side. There could be more than one answer. Please be 100% sure

A. The government lowers tax rates and undertakes a replacement of old bridges and roads.

B. The government lowers tax rates and issues a partial refund of taxes that have already been paid.

C. The government raises tax rates and reduces unemployment insurance payments.

D. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes.

Reference no: EM131094553

Questions Cloud

What are the equilibrium values of the real wage : Suppose all workers value their leisure at at 90 goods per day. The production function relating output per day to the number of people working per day (L) is: Assume there are no taxes. What are the equilibrium values of the real wage, employment an..
Find the substitution-income and total effects on demand : A consumer has utility function given by u(x_1, x_2) = Squarerootx_1x_2. Suppose the price of good 1 falls from $5 to $2. while the price of good 2 and the consumer's income remain constant at $10 and $100, respectively. Find the substitution, income..
Consumer has utility function : A consumer has utility function given by u(x_1, x_2) = Squarerootx_1x_2. Suppose the price of good 1 falls from $5 to $2. while the price of good 2 and the consumer's income remain constant at $10 and $100, respectively. Find the substitution, income..
Withdraw fixed amount from this savings account : Mr. Diamond expects to invest $1000 per year for each of the next 20 years in an investment plan that pays 10% per year, compounded annually. At the end of the 20th year, he expects to withdraw the balance in his investment plan and deposit it in a s..
When the economy is in recession-expansionary fiscal policy : When the economy is in a recession, expansionary fiscal policy can be used to stimulate and encourage economic growth. Which of the following scenarios represent expansionary fiscal policies from both a supply and demand perspective at the same time?
Considering purchasing water filtration system : Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years, at which time its salvage value will be $7,500. Operating and maintenance..
Explain the production effect of growth : In a two-factor, two-good heckscher-ohlin context, illustrate and explain the "production effect" of growth in the labor force in a relatively capital-abundant country, other things equal.
Treasury securities issued heavily indebted sovereign states : Signs of investor uneasiness in continuing to purchase treasury securities issued by heavily indebted sovereign states such as Greece and Spain have triggered a debate in the past about raising the debt ceiling here. “Tea Party” republicans in the Ho..
Aggregate demand and aggregate supply model : Use the dynamics of Aggregate Demand and Aggregate Supply Model: What was the role of the Fed before and after the crisis? should they have done it differently to prevent the crisis? Should commercial banks been allowed to enter in investment banking..

Reviews

Write a Review

Business Economics Questions & Answers

  What is this firms minimum cost of producing

The firm’s production function is Y = min {A/4; 2B} + 5C. Suppose that the price per unit of input A is 2 euros, the price per unit of input B is 6 euros, the price per unit of input C is 30 euros. What is this firm’s minimum cost of producing 40 uni..

  Qq1 explain how a tight monetary policy could affect the

q.q1. explain how a tight monetary policy could affect the amount of funds borrowed at financial institutions by

  Difference between microeconomics and macroeconomics

What is the difference between Microeconomics and Macroeconomics? What are an example of each of them? Explain in detail

  Bid-ask spreads-currency dealer

Bid-ask spreads: Suppose you contact your currency dealer at Credit Agricole and obtain the following quote on US dollars, priced in Swiss franc (SF).

  What are total costs-prices-revenues and profits for firm

Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10,400, fixed costs of $50,000, marginal costs of $20, and a market share of 8%. What are the total costs, prices, revenues..

  Cash demand does not depend on the expected rate

How do your previous answers change in the special case where cash demand does not depend on the expected rate of inflation

  Consider the effects of immigration on an economy

Use the AS/AD model to describe the effect of each of the following events on the economy of Snezhanka (a fictitious nation). Beginning with the economy in equilibrium carefully show the shift involved and the new equilibrium. Let’s consider the effe..

  Average vs marginal cost at current quantity being produced

If a producer (who has no impact on prices) is correctly profit maximizing and making a profit, what must be true about average vs marginal cost at the current quantity being produced?

  Example of an automatic stabilizer

Which of the following is an example of an automatic stabilizer? When the economy goes into a recession,

  Utility function-what is the slope of the budget constraint

Gene has the following utility function: U = XY + 2Y, the Px = $4, the Py = $1 and I=$6. What is the slope of the budget constraint? At the optimal X* and Y* calculate and interpret the MUx/Px & MUy/Py.

  Explain was demand for its hamburgers elastic or inelastic

Explain was the demand for its hamburgers elastic or inelastic. Evaluate the accuracy statement.

  Lowest price firm and the highest price firm

Consumers buy from the lowest price firm, and the highest price firm sells nothing. If the firms pick the same price, they split the market demand equally.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd