Question: Please help me to answer these questions, thanks. . The tools of fiscal policy include: a) the money supply and interest rates. b) government regulation.

Please help me to answer these questions, thanks.

Please help me to answer these questions, thanks. . The tools of

. The tools of fiscal policy include: a) the money supply and interest rates. b) government regulation. c) d) government spending and taxation. exchange rates and trade barriers. 2 4. The purpose of an expansionary fiscal policy is to: increase aggregate demand, employment, and output. b) reduce aggregate demand, employment, and output. c) reduce inflationary pressures. d) reduce interest rates. 53 . Which of the following fiscal policies would increase aggregate demand the most? a) Lower taxes and higher government spending. b) Lower taxes and lower government spending. c) Higher taxes and lower government spending. d) Higher taxes and higher government spending. 59 What is the purpose of a contractionary fiscal policy? a) To increase aggregate demand and reduce unemployment. b) To decrease aggregate demand and increase interest rates. c) To reduce both aggregate demand and inflationary pressure. d) To increase both aggregate demand and equilibrium income. Price level LAS SAS Aggregate demand 2000 2300 Real output 56, Refer to the graph above. If the economy in the graph is operating at point A and the mpe is .67, then the most appropriate fiscal policy would be: a) an increase in government expenditures of approximately 100. b) a decrease in government expenditures of approximately 100. c) an decrease in government expenditures of approximately 300. d) a reduction in taxes by approximately 300

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