Define and explain fiscal policy, explain the difference and workings of expansionary versus contractionary fiscal policy, budget deficit versus budget surplus. Describe excessive increases and decreases in aggregate demand; what do they cause, how do they affect the budget? 300 words
Define and explain fiscal policy, explain the difference and workings of expansionary versus contractionary fiscal policy, budget deficit versus budget surplus. Describe excessive increases and decreases in aggregate demand; what do they cause, how do they affect the budget? 300 words
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Related questions
1. If government tax policy requires Jane to pay $28,000 in taxes on an annual income of $200,000 and Mary to pay $10,000 in tax on the annual income of $100,000, then the tax policy is:
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regressive. |
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progressive. |
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proportional. |
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optional. |
2. When increasing oil prices cause aggregate supply to shift to the left, then:
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unemployment and inflation decrease. |
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unemployment decreases and inflation increases. |
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unemployment and inflation increase. |
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unemployment increases and inflation decreases. |
3. What do goods like gasoline, tobacco, and alcohol typically share in common?
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A progressive tax is imposed on each of them. |
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A regressive tax is imposed on each of them. |
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They are all subject to government excise taxes. |
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They are all subject to government fiscal taxes. |
4. When inflation begins to climb to unacceptable levels in the economy, the government should:
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use contractionary fiscal policy to shift aggregate demand to the right. |
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use contractionary fiscal policy to shift aggregate demand to the left. |
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use expansionary fiscal policy to shift aggregate demand to the right. |
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use expansionary fiscal policy to shift aggregate demand to the left. |
