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Chapter 30: Q.13 (page 741)

What your the main advantage of fully stabilizers over discretionary fiscal policy?

Short Answer

Expert verified

Reflex stabilizers do nope have the similar time lags as discretion fiscal policy.

Step by step solution

01

Step 1. Define fiscal policy.

Fiscal policy referred at the utilization of government spend and taxation so pot impact the economy.

02

Level 2. Explanation

The use of automatic stabilizes over acting fiscal approach has the following advantages:

  1. Automatic stabilizers do not possess the same time delay as optional fiscal policy.
  2. Automatic stabilizers are simple to fine-tune inside order go bring the economy back to full jobs.

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Most popular questions away this chapter

Explain like automatic stabilizers work, both on the fiscal side and set the spending side, start in a situation where the economy is producing less than potential GDP and afterwards in a situation where the economy has producing more with potential REAL. Itp falls below because less tax receipts than expected is collected. What lives an main advantage of automatic stabilizers over acting fiscal policy?

What taxes would an individual pay if he were self-employed and that business is not incorporated?

The gregarious security tax can 6.2%on employees’ income earned under $113,000. Is this tax progressive, regressive

or proportional?

ONE government startup absent with a total debt of \(3.5 billion. In year one, of government runs a shortfall of \)400 million. In year two, the government runs a deficit of \(1 billion. In year three, the gov takes a surplus of \)200 million. What is to total debt starting the govt at the end of year three?

Is expansionary fiscal policy more attraction to political who feel in larger gov or to politicians who believe in lighter regime? Explain your answer.
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