My dear expert bro hand written not allowed please keep in mind Problem 15-03According to Bernanke's policy guide below,Bernanke's 1/4 point reduction inpolicy guide: long-term interest rateWhat is the fiscal policy equivalent of a 0.5 percent cut in long-term interest rates?Instructions: Enter your response as a positive whole number (do not include a (-) negative sign).billion Fiscal stimulus$$50 billionfiscal stimulus200

This concept can be defined as a tool that helps in measuring the total amount of production of…

According to Bernanke's policy guide below, Bernanke's 1/4 point reduction in policy guide: long-term interest rate $50 billion fiscal stimulus What is the fiscal policy equivalent of a 0.5 percent cut in long-term interest rates? Instructions: Enter your response as a positive whole number (do not include a (-) negative sign). $ 200 billion Fiscal stimulus

According to Bernanke's policy guide below, Bernanke's 1/4 point reduction in policy guide: long-term interest rate $50 billion fiscal stimulus What is the fiscal policy equivalent of a 0.5 percent cut in long-term interest rates? Instructions: Enter your response as a positive whole number (do not include a (-) negative sign). $ 200 billion Fiscal stimulus

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 2.9P

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Similar questions

Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?
Explain whether or not you agree with the premise of the Ricardian equivalence theory that rational people might reason: Well, a higher budget deficit (surplus) means that Im just going to owe more (less) taxes In the future to pay off all that government borrowing, so Ill start saving (spending) now. Why or why not?
Why do automatic stabilizers function automatically?
What is the main reason for employing expansionary fiscal policy during a recession?
The U.S. government has shut down a number of times In recent history Explain how a government shutdown will affect the variables In the national Investment and savings identity Could the shutdown affect the government budget deficit?
Assume there is no discretionary increase in government spending. Explain how an improving economy will affect the budget balance and, in turn, investment and the trade balance.
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in response to each of the situations below and sketch a diagram using aggregate demand and aggregate supply curves to illustrate your answer: A recession. A stock market collapse that hurts consumer and business confidence. Extremely rapid growth of exports. Rising inflation. A rise in the natural rate of unemployment. A rise in oil prices.
What are some practical weaknesses of discretionary fiscal policy?
A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of 400 million. In year two, the government runs a deficit of 1 billion. In year three, the government runs a surplus of 200 million. What is the total debt of the government at the end of year three?
Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in a situation where the economy is producing less than potential GDP and then in a situation where the economy Is producing more than potential GDP.