Fiscal policy is described as the actions used by the government to foster economic growth and stability. The instrument used are taxes and government spending. This is done either through increasing or decreasing taxes and government spending to curb inflation and unemployment. The government spending is an injection to the economy while taxes represent withdrawal.
Answer and Explanation:1
The correct answer is (C). Lower taxes on research and development of new technology.
The supply-side fiscal policy offers incentives to the producers…
Ask a question
Our experts can answer your tough homework and lisbdnet.com questions.
Ask a question Ask a question
Review what fiscal policy is and how the two key components of fiscal policy can be used to influence unemployment. Find out when and how fiscal policy can be used and why it is so important.
Structural unemployment can present a very serious problem to an economy. In this lesson, you”ll learn what structural employment is and what causes it, and you”ll be provided some examples. You”ll also have a chance to take a short quiz.
Watch this lesson to learn about the features that are built into the tax code and the government”s budget that help offset declines in aggregate demand during recessions. Referred to as automatic stabilizers, they also address the needs of individuals facing hard times.
In the 21st century, the realities of a recessionary economy are more vivid than many of us would probably like. In this lesson, you”ll learn how the government uses expansionary policy to offset recessionary gaps using real-world examples.
In this lesson, you”ll learn how the central bank helps the economy grow during recessions by increasing the size of the money supply. An overview of the three tools of monetary policy are included as well as the reasons why monetary policy leads to higher economic output.
Author Mary Shelly”s 1818 creation, “”Frankenstein”s Monster,”” has greatly influenced popular culture. This lesson examines how the monster you see in movies, television, and other forms of entertainment might not be what the author originally intended him to be.
This lesson explains what supply-side economics is, where it started, and how economists illustrate it. It provides a basic overview of the still-controversial theory that was popularized by President Ronald Reagan during the 1980s.
Chaucer makes use of several literary devices within “”The Canterbury Tales””, and allegory is one that makes several appearances in the work. This lesson covers the overarching plot of the journey from the tavern to Canterbury, which is an allegory itself, as well as three allegorical tales.
This lesson presents the theory of Keynesian economics, its origination and development. It also connects Keynesian economics with other economic concepts.
In this lesson, you”ll learn about the Consumer Price Index and how it is measured. You”ll also learn why many economists believe that the Consumer Price Index overstates inflation.
Governments often intervene in their economies in an attempt to maintain economic stability. In this lesson, you”ll learn about fiscal and monetary policies, including what effect they can have on a national economy. A short quiz follows.
We all probably know what unemployment is, but not all the different types of it. In this lesson, you”ll learn about cyclical unemployment and be provided some examples. You”ll also have a chance to take a short quiz.
Diminishing marginal utility is an important concept in economics and helps explain consumer demand. In this lesson, we will explore this topic, look at some real-world examples, and end with a quiz.
In this lesson, you”ll learn about an economy that is in balance. The full employment level of GDP is when economic output is at its highest sustainable level, when unemployment is at its most efficient level and when inflation is neither rising nor falling.
Can a weaker dollar create jobs in the United States? Does a stronger euro increase unemployment in Europe? In this lesson, learn about the effects of currency appreciation and depreciation on unemployment and explore ways to mitigate them.
Competition is what makes the business world thrive. In this lesson, we”ll learn about one type of competition known as monopolistic competition. We”ll learn about the characteristics and how a business might be affected now and in the future.
In this lesson, you”ll learn about unanticipated inflation. Take a look at the positive and negative effects associated with it, who it affects, as well as a real life example.
Discover how fiscal and monetary policy can affect the exchange rate and ultimately the amount of money it costs you to buy goods and services. Find out the three paths that both fiscal and monetary policy can travel to impact the exchange rate.
An economy can”t grow if its citizens can”t grow. In this lesson, we”ll discuss material and non-material living standards and how living standards are affected by economic policies and decisions.
This lesson explains how microeconomic principles affect the decision-making processes of businesses. Examples will illustrate how these principles impact labor, productivity, the types of goods and services offered, supply and demand, economic utility, and pricing.
Explore one of the most widely accepted ideas in economics – the idea that nations benefit from specialization and exchange, reaping gains from trade.