Question and answer
How does the federal government implement its fiscal policies? Given economic conditions today, do you suggest expansionary fiscal policy or contractionary fiscal policy? How would your suggestions
affect production and employment? Why?
The federal government implements fiscal policy utilizing its many legislative venues, each State has its own legislators that set fiscal policy for each of their own States, [ the Federal government has the senate and house to set its fiscal policies with the President approving laws passed by the combined Senate and House of Representatives. The government has implements its fiscal policies
via automatic controls and legislative changes. Automatic controls are ones that do not have to be voted on. These policies, such as; unemployment insurance and progressive taxes are already in place and have the most affect on the short-run changes in economic business cycles by dampening the rising or decreasing of income and spending. Whereas the legislative policy changes involving taxes or spending take time to write, be voted on and then implemented. The problem with these policies is the possible over-correction for a temporary fluctuation in the market. For today’s market, I would have chosen an expansionary policy that was cognizant of the potential recovery and reduced the targeted levels. Taking into consideration how the automatic controls operate to keep the peaks and valleys down to small hill and dales. Increases in the government spending coupled with tax cuts will result in an increase in overall incomes as more jobs become available. These increases will increase production and employment to meet the aggregate demand. In the business cycle, this will result in an increase in consumer spending which will result in an increase in prices that will then start the cycle of restricting purchases due to the lower purchasing power of the consumer’s money. ]
Expert answered|patmarone|Points 201|
Question
Asked 7/5/2011 9:18:09 AM
0 Answers/Comments
Ask a question
Not a good answer? Get an answer now. (Free)
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
16,953,840 questions answered
Popular Conversations
What is the equation of the line described below written in ...
Weegy: The line passing through point (4, -1) and perpendicular to the line whose equation is 2x - y - 7 = 0 in slope ...
7/28/2014 12:38:02 PM| 7 Answers
beliefs of buddhism
Weegy: Read more: Buddhism: Basic Beliefs and Practices | Infoplease.com ]
7/28/2014 4:39:59 AM| 5 Answers
10. In general terms, the heart of any representative democracy is A. ...
Weegy: 10. In general terms, the heart of any representative democracy is suffrage.
7/28/2014 7:29:37 PM| 5 Answers
Find the product. (-7p)^3
Weegy: -21p User: Find the product. (n^3)^2 · (n^5)^4 Weegy: your question? User: Find the ...
7/28/2014 7:09:27 AM| 3 Answers
What is the solution set of the following equation? -8x + x + 15 = ...
Weegy: Answer is definitely c. B = (R - Ax)/x User: The slope of a line is -1/3. Find the slope of a line that is ...
7/28/2014 1:05:49 PM| 3 Answers
Exerts control over all parts of the body (Points : 4) Nervous ...
Weegy: 1. Peripheral nervous system registers information and controls movements outside the central nervous system. ...
7/28/2014 3:41:02 PM| 3 Answers
Solve for x. 8 – 3x = 20 User: Juan buys 4 shirts on sale for $15 ...
Weegy: 4 tshirts 4 x $15.00 = $60.00 $78.00 - $60.00 = $18.00 6 pairs of socks is $18.00 $18.00 / 6 = $3.00 each ...
7/28/2014 7:55:02 AM| 2 Answers
Weegy Stuff
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
Points 2327 [Total 21327]| Ratings 1| Comments 2317| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
Points 2163 [Total 17292]| Ratings 0| Comments 2163| Invitations 0|Offline
S
L
P
C
L
P
C
P
C
L
P
C
P
C
Points 1996 [Total 14551]| Ratings 1| Comments 1986| Invitations 0|Offline
S
L
1
Points 1601 [Total 3784]| Ratings 2| Comments 1581| Invitations 0|Online
S
L
1
1
1
1
L
1
Points 1347 [Total 7524]| Ratings 2| Comments 1327| Invitations 0|Offline
S
1
L
Points 1123 [Total 3259]| Ratings 7| Comments 1053| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 948 [Total 10556]| Ratings 0| Comments 948| Invitations 0|Offline
S
1
L
Points 834 [Total 4510]| Ratings 2| Comments 814| Invitations 0|Offline
S
P
C
L
P
L
1
Points 798 [Total 5852]| Ratings 4| Comments 758| Invitations 0|Offline
S
R
R
Points 160 [Total 348]| Ratings 1| Comments 140| Invitations 1|Offline
Home | Contact | Archive | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.