Question: 1 . What is the difference between a budget deficit and the national debt? 2 . What is the difference between expansionary fiscal policy and

1. What is the difference between a budget deficit and the national debt?
2. What is the difference between expansionary fiscal policy and contractionary fiscal policy?
3. Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
4. What is the difference between discretionary fiscal policy and automatic stabilizers?
5. Why do automatic stabilizers function "automatically?"

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

In 35 sentences answer the following: 1. Explain the difference between a budget deficit and the national debt. 2. As debt to GDP ratios increase for a government, what is likely to happen to the...

Q:

ECON 214 PROBLEM SET 4 1) Explain the difference between a budget deficit and the national debt. 2) Use the Marginal Income Tax Rates in Figure 15.6 (see p. 463) to compute the following: a. Tax due...

Q:

W12 Tutorial - Fiscal Policy 1. What is a Government Budget? Discuss the latest Budget in your country, 2. Distinguish between a budget deficit and the national debt. 3. Using examples, explain...

Q:

The framers sought to prevent an accumulation of arbitrary and unaccountable power by dividing government in some fundamental ways. List 3 of those ways. (LS; W) In discussing the foundations of...

Q:

Can you tell me if my answers are correct? Thank you. An inflationary output gap: 0 occurs when actual national income exceeds potential national income. 0 is observed before the price of factors of...

Q:

1. The government accounts directly for about 20% of the GDP. Why is government such a major factor in our economy? 2. Is the government debt (over 23 trillion dollars) a problem for future...

Q:

1 . Definitions Aggregate Demand Aggregate Supply Multiplier Effect Expansionary Fiscal Policy Contractionary Fiscal Policy Expansionary Monetary Policy Contractionary Monetary Policy Expenditure...

Q:

Determine whether the cases below are examples of either expansionary fiscal policy, contractionary fiscal policy, expansionary monetary policy, or contractionary monetary policy and explain why....

Q:

The aggregate expenditure model assumes flexible prices * 1 point True False Demand-pull inflation is due to an increase in aggregate demand when * 1 point Aggregate supply is unit elastic Aggregate...

Q:

Match the following to whether they represent an example of expansionary fiscal policy, contractionary fiscal policy or neither: A. The government of Quarterville reduces the taxe rates for middle...

Q:

Why do states have long-arm jurisdiction statutes?

Q:

Based upon the data shown in Exercises 51 and 52, comment on the operating performance of CVS in comparison to Walgreen.

Q:

Which of the following resources does not offer updates on a broad range of standard setters activities? ( such as the AICPA, PCAOB, FASB, IASB, and so on ) ? Option A FASB Action Alerts Option B...

Q:

Explain th.e question given below. translates into a greater increase in the capital stock. (Note: another way to interpret q, is as the inverse of the relative price between machinery and output:...