How does government pay for incentives affect economic development?
- If governments pay for incentives by decreasing public spending on education, training, or infrastructure, the negative economic development effects of those budget cuts may exceed any benefits from the incentives. Finally, is there a decent model to accurately assess the impact of the incentive?
Which of the following most accurately indicates the political incentive to spend and/or tax quizlet?
Which of the following most accurately indicates the political incentive to spend and/or tax? Politicians are rewarded for providing programs that benefit their constituents and punished for raising taxes.
Which government deals with taxes and spending?
Under current institutional arrangements, fiscal policy is the only arm of macroeconomic policy directly controlled by government. A fiscal stimulus package is an example of discretionary action by government intended to support aggregate demand by increasing public spending and/or cutting taxes.
Which of the following contributes to the popularity of the argument that government spending?
Which of the following contributes to the popularity of the argument that government spending expands employment? The employment generated by the additional spending is highly visible, while the employment crowded out by taxing, spending, and borrowing is largely unseen.
Which of the following attributes of fiscal policy will most likely be stressed by a proponent of supply side economics?
Which of the following attributes of fiscal policy will most likely be stressed by a proponent of supply-side economics? decrease consumption spending.
Which of the following best illustrates the use of discretionary countercyclical fiscal policy?
Which of the following best illustrates the use of discretionary countercyclical fiscal policy? Congress passes a bill authorizing $100 billion in additional spending when it receives news of a deepening recession. encourage budget deficits during both recessions and expansions.
Which of the following would be most likely to maintain that spending increases and larger budget deficits would help promote recovery from the recession of 2008 2009?
Which of the following would be most likely to maintain that spending increases and larger budget deficits would help promote recovery from the recession of 2008-2009? – higher interest rates and lower private investment under the crowding-out view.
When government increases spending or decreases taxes to stimulate the economy and increase real gross domestic product government is determining <UNK> policy?
Question: When the government increases spending or decreases taxes to stimulate the economy and to increase real gross domestic product, the government is determining policy.
When government spending increases and taxes increase by an equal amount?
The balanced-budget multiplier is equal to 1 and can be summarized as follows: when the government increases spending and taxes by the same amount, output will go up by that same amount.
When the federal government takes action to change taxes and spending to stimulate the economy such policy is?
When the federal government uses taxation and spending actions to stimulate the economy, it is conducting: fiscal policy. When the federal government cuts taxes and increases spenidng to stimulate the economy during a period of recession, such actions are designed to be: countercyclical.
Which of the following most accurately indicates the relationship between economic growth and life expectancy quizlet?
Which of the following most accurately indicates the relationship between economic growth and life expectancy? countries that experience economic growth tend to experience increases in life expectancy.
Which of the following most accurately states the economic significance of voluntary exchange?
Which of the following most accurately states the economic significance of voluntary exchange? Exchange creates value because it makes it possible for the trading partners to expand total output as the result of specialization and division of labor.
Which of the following holds the most US government debt?
Public Debt The public holds over $22 trillion of the national debt. 1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and savings bonds.
Was supply-side economics successful?
But that’s what’s so surprising about supply-side economics: Despite the fact that its central claim has been belied by decades of economic experience, it persists. Supply-side economics assumes that lower tax rates boost economic growth by giving people incentives to work, save, and invest more.
Which of the following most clearly states the paradox of thrift?
Which of the following most clearly states the “paradox of thrift”? If households simultaneously attempt to increase their savings, the result may be a reduction in demand, output, and total savings.
Which one of the following will give rise to a rightward shift of the AD curve?
Increase in government spending, increase in consumption, and decrease in taxes will lead to a shift of the AD curve right ward.