Countercyclical discretionary fiscal policy calls for. Macro Practice Questions, Chapter 2022-12-20

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Factory farming is a controversial and highly debated topic in modern agriculture. It involves the mass production of animals for food, using techniques that are designed to maximize efficiency and profits, often at the expense of the welfare of the animals and the environment.

On one hand, factory farming can be seen as a necessary evil in a world with an increasing demand for affordable food. It allows for the production of large quantities of meat, eggs, and dairy products at relatively low costs, making these products more accessible to a larger portion of the population.

However, there are many negative aspects to factory farming that cannot be ignored. One major concern is the poor living conditions of the animals. In factory farms, animals are often kept in crowded, confinement systems where they are unable to engage in natural behaviors such as roaming, foraging, and socializing. This can lead to physical and mental suffering for the animals, and can also increase the risk of diseases and infections.

Factory farming also has significant environmental impacts. Large factory farms can produce vast amounts of animal waste, which can pollute air and water sources and contribute to greenhouse gas emissions. In addition, factory farms often rely on the use of synthetic fertilizers and pesticides, which can have negative impacts on soil health and ecosystems.

Furthermore, factory farming can contribute to the spread of diseases, as the close confinement of animals makes it easier for infections to spread. This can have serious consequences for both animal and human health. For example, the emergence of swine flu and avian influenza can be traced back to factory farming practices.

Overall, it is clear that factory farming has many negative consequences, both for the animals and for the environment. While it may provide an affordable source of food, it is important to consider the long-term costs of this type of agriculture and to consider alternative methods of food production that prioritize animal welfare and environmental sustainability.

unit V questions A

countercyclical discretionary fiscal policy calls for

Discretionary fiscal policy refers to: intentional changes in taxes and government expenditures made by Congress to stabilize the economy. Discretionary fiscal policy is often initiated on the advice of the Council of Economic Advisers If the U. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt. The amount by which government expenditures exceed revenues during a particular year is the: budget deficit. Fiscal policy operates in a political environment in which the unpopularity of higher taxes and specific cuts in spending may dictate that the most appropriate economic policies are ignored for political reasons. The combination of fiscal policies that would reinforce each other and be most expansionary would be a n : Answers: A. Distracted by a war that is going badly, inflation reaches 8 percent before politicians take notice.


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What Is Countercyclical Fiscal Policy?

countercyclical discretionary fiscal policy calls for

Discretionary fiscal policy refers to: A any change in government spending or taxes that destabilizes the economy. Which of the following statements is correct? Built-in stability means that: with given tax rates and expenditures policies, a rise in domestic income will reduce When current government expenditures exceed current tax revenues and the economy is achieving full employment: the cyclically adjusted budget has a deficit. As explained above, countercyclical discretionary fiscal policy is designed to counter the effects of the economic cycle. B deficits during recessions and surpluses during periods of demand-pull inflation. Which of the following policies would most likely end the recession and stimulate output growth? The main objective of this is to manage the fluctuations in the economy.

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macro

countercyclical discretionary fiscal policy calls for

Why is the distinction important? This policy can be applied to an entire population or to people at a certain income level. Which of the following are tools of fiscal policy to positively stimulate the economy? Discretionary fiscal policies, on the other hand, are policies that the government uses discretion to implement. C altering of the interest rate to change aggregate demand. Discretionary Fiscal Policy: government spending and tax changes enacted at the time of the problem to alter the economy. . Countercyclical discretionary fiscal policy goes against the current norms related to the economy.

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chapter 31 Flashcards

countercyclical discretionary fiscal policy calls for

If an economy is growing too quickly, a countercyclical policy will slow it down. By contrast, lowering taxes and increasing government spending would both increase aggregate demand and shift the AD curve to the right—something that would only increase the size of the inflationary output gap. Discretionary fiscal policy is a policy action aimed at stabilizing the business cycle. Fiscal policy refers to the: A manipulation of government spending and taxes to stabilize domestic output, employment, and the price level. Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a n contractionary fiscal policy. But interest does have to be paid. The economy is at equilibrium at point B.

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Macroeconomics Chapter 8 Quiz Flashcards

countercyclical discretionary fiscal policy calls for

Which of the following would be most in accord with appropriate government fiscal policy? Which of the following fiscal policy actions is most likely to increase aggregate supply? If the full-employment GDP for the economy is at L, then we can say with certainty that the: cyclically adjusted budget will have a surplus. D deficits during both recessions and periods of demand-pull inflation. How do economists distinguish between the absolute and relative sizes of the public debt? Free market proponents are not a fan of these policies. Restricting immigration of skilled working-age adults. The economy is at equilibrium at point C. C tax cuts during recession and tax increases during inflation.

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Macro Practice Questions, Chapter

countercyclical discretionary fiscal policy calls for

B tax increases during recession and tax cuts during inflation. For example, while a significant A common kind of ongoing countercyclical policy is progressive taxation. Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as GDP rises. Believing that tax rates will rise again and possibly concerned that they will rise to rates higher than before the tax cut , households may instead save their additional after-tax income in anticipation of needing to pay taxes in the future. While fiscal policy is useful in combating the extremes of severe recession with its built-in "safety nets" and stabilization tools, and while the built-in stabilizers can also dampen spending during inflationary periods, it is undoubtedly not possible to keep the economy at its full- employment, non inflationary level of real GDP indefinitely. With less money to spend, households reduce consumption spending and businesses reduce investment spending.

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Chapter 13 Flashcards

countercyclical discretionary fiscal policy calls for

The main objective of this is to manage the fluctuations in the economy. Retiring the debt means purchasing bonds back from those who hold them or paying the bonds off at maturity. How large a tax cut would be needed to achieve the same increase in aggregate demand? Reductions in government spending also reduce aggregate demand by directly reducing G. Proponents of the notion of a "political business cycle" suggest that: Answers: A. Fiscal policy refers to the deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level. B surpluses during both recessions and periods of demand-pull inflation. Assume that a hypothetical economy with an MPC of.

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What is countercyclical discretionary fiscal policy?

countercyclical discretionary fiscal policy calls for

Discretionary fiscal policy is so named because it: A is undertaken at the option of the nation's central bank. Since the government is running a cyclically adjusted budget deficit, this fiscal policy is expansionary. The set of fiscal policies that would be most contractionary would be a n decrease in government spending and an increase in taxes If the government wishes to increase the level of real GDP, it might reduce taxes The so-called negative taxes are better known as transfer payments The political business cycle refers to the possibility that politicians will manipulate the economy to enhance their chances of being reelected The crowding-out effect of expansionary fiscal policy suggests that increases in government spending financed through borrowing will increase the interest rate and thereby reduce investment The financing of a government deficit increases interest rates and, as a result, reduces investment spending. But interest does have to be paid. With the expenditures programs and the tax system shown in the diagram: deficits will occur at income levels below K, and surpluses above K.

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Countercyclical discretionary fiscal policy calls for: a. surpluses during both recessions and periods of demand

countercyclical discretionary fiscal policy calls for

Specifically, revenues from income and excise taxes decline as unemployment rises and consumer spending falls. In this case, the crowding-out effect suggests that investment spending will decrease, thus partially offsetting the fiscal policy. Distinguish between refinancing the debt and retiring the debt. Which of the following is the best definition of the term countercyclical? D increases in government spending during recession and tax increases during inflation. Increasing the retirement age for collecting Social Security and Medicare benefits.

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Countercyclical discretionary fiscal policy calls for A surpluses during

countercyclical discretionary fiscal policy calls for

Politicians will use fiscal policy to cause output, real incomes, and employment to be rising prior to elections. Assume the economy is at full employment and that investment spending declines dramatically. Countercyclical discretionary fiscal policy calls for: Answers: A. Nevertheless, discretionary fiscal policy is a valuable tool in preventing severe recession or severe demand-pull inflation. Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy.

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