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

  Assume that neither treasury note had coupon payments

Suppose the yield to maturity on a 2-year Treasury note was 4 % while the yield on a 1 year note was 5%. Assume that neither Treasury note had coupon payments, so the only payment was the face value received when the note matured. Why is it unusual f..

  According to the article about the gasoline shortage

According to the article about the gasoline shortage, which way is the demand curve shifting

  Honda accord owners are fiercely loyal to their auto choice

honda accord owners are fiercely loyal to their auto choice. while interviewed by representatives of honda number one

  Needs advantages or disadvantages of buying imports

Needs advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry

  Two firms engage in cournot competition

Suppose the airline industry consists of two firms, A and B. These two firms engage in Cournot competition with each other over a certain route for which inverse demand is P(Q) = 1000 − Q with Q = qA + qB. Solve for the Cournot equilibrium price.

  What is the future worth of series of equal monthly payments

What is the future worth of a series of equal monthly payments of $5,000 if the series extends over a period of six years at 9% interest compounded?

  Calculate the expected utility of the investment opportunity

Suppose an economic agent has a utility function U = Ln (R). Assume R is the return on investment and utility is the natural log of investment. If the investment is highly successful then the agent earns $10000. Derive the expected value of the inves..

  Linear budget constraint-typical convex indifference curves

lisa has a linear budget constraint and typical convex indifference curves associated with food and "all other goods." suppose that lisa is given $50 worth of food stamps, which can only be used for food, Draw lisa's budget constraints, with an witho..

  How does politics affect economic policies

Give examples of government regulations that work and examples of government regulations that do not work. Explain why in each case. How does politics affect economic policies? Is it negative or positive?

  What is the elasticity using the midpoint formula

Suppose that a store will sell 2000 boxes of bananas a week at a price of $12 per box. If the store raises its prices to $15 per box, it will sell 1500 boxes. What is the elasticity using the original formula? What is the elasticity using the midpoin..

  What is the marginal product-total product for each month

The Green City Hospital treated 100 patients in May with 20 nursing hour inputs, and it treated 120 patients in June with 22 nursing hour inputs. What is the total product for each month? What is the marginal product?

  Concerned about inter-generational equity

The Australian government is concerned about inter-generational equity problems. Key problems arise from a larger number of older retired people being supported by a smaller workforce of young people, and from ever increasing budget deficits to be pa..

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