Write the expansionary and contractionary fiscal policies

Reference no: EM13451752

Fiscal policy refers to the changes in government's choices regarding the overall level of government spending and taxes to affect the behavior of the economy. Fiscal policy can expand or contract aggregate demand. The government sometimes uses the fiscal policy instruments in an attempt to stabilize the economy. Under a recession, an expansionary fiscal policy is adopted, which involves lowering taxes and increasing government spending. In an overheated expansion with an inflationary pressure, a contractionary fiscal policy is utilized, which requires higher taxes and reduced spending. Economists and policymakers disagree about how active the government should be in these efforts.

Based on the above summary and the detailed descriptions of the issues in the textbook (chapter 30) discuss any of the following set of questions:

What are the expansionary and contractionary fiscal policies? What are their policy instruments? How are they used to deal with the inflationary gap and recessionary gap?
What is the relationship between budget deficits and national (public) debt? Why has the USA national debt been increasing for decades?
Should the tax laws be reformed to encourage saving? Do you think consumption tax is better than income tax?

Reference no: EM13451752

Questions Cloud

Should this investment be made explain your answer 106 106 : find the following values for a lump sum assuming annual compounding. a. the future value of 500 invested at 8 for one

In the consideration of internal control the auditor is : in the consideration of internal control the auditor is basically concerned that internal control provides reasonable

Assesment using an organisation of your choice as a case : using an organisation of your choice as a case study prepare a presentationand notes of no more than 2500 words that

Select two major public relations campaigns from any three : select two major public relations campaigns from any three different organizations. prepare and submit a two to three

Write the expansionary and contractionary fiscal policies : fiscal policy refers to the changes in governments choices regarding the overall level of government spending and

When an auditor raises the risk of material misstatement : when an auditor increases the risk of material misstatement because certain control procedures were determined to be

What products and services does the company offers for : 7-8 powerpoint slides not including title or reference slides minimum of 100-150 words of speaker details during an

Conduct a scenario analysis suppose that the hospitals : a.perform a sensitivity analysis to see how npv is affected by changes in the number of procedures per day average

Why countries impose trade restrictions on goods and : a balance of trade trade balance is the difference between the monetary values of exports and imports of a countrys

User Account

All Pages