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Q: Some economists say it takes too long for changes in taxes or government spending to be put in effect and when the changes do occur there is no strong evidence that they work?
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The group of three economists appointed by the President to provide fiscal policy recommendations is the?

Fiscal policy consists of deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth. Discretionary ("active") changes in government spending and taxes are at the option of the Federal government while non-discretionary ("automatic") changes occur without congressional action. Discretionary fiscal policy is often initiated on the advice of the President's Council of Economic Advisers (CEA), a group of three economists appointed by the President to provide expertise and assistance on economic matters.


What does fiscal policy include?

changes in government spending and taxation


Instruments of fiscal policy?

changes in the composition of taxation and government spending


The response of businesses and individuals to fiscal policy changes is related to which of these?

the amount of funds government is spending


When changes to taxes and spending occur in the economy without explicit action by the federal government such policy is?

discretionary


Do economists predict future changes in the economy?

yes!


Explain why tax revenue changes when the economy goes into a recession?

Tax revenue changes when the economy goes into a recession. When there is a recession, the government increases tax revenue. The government does this because less people are spending money.


What is the impact of Injections into the spending stream?

The impact of injections into the spending stream is that injections add to main income spending stream in economy . Often times , people think of government spending as an injection , but that is misleading . For the government to ''inject'' into the spending stream , it must first take something from it . As you would if you were to donate blood . Your blood cannot be donated to another body if it has not yet been taken from you . Injections are an addition to the income of firms which do not normally arise from the expenditure of households e.g. changes in investment , government spending or exports .


What evidence existed that government needed to assume new responsibilities?

Some evidence would be to see that historically many government assume new responsibilities and power as their country changes and develops. As a country grows and evolves new issues may arise that the government may need to address.


What does an economist's work demand?

It depends on where the economist works. In the financial industry and in large corporations, economists are hired to help other employees understand changes in the economy, especially monetary policy changes at the US Federal Reserve. At small colleges, economists are hired to teach economics. At large universities, economists will have research responsibilities in addition to their teaching responsibilities if they want to become full professors.


Which is most likely to be affected by changes in the rate of interest?

investment spending


Describe the fiscal policy tools available for government intervention in the American economy?

There are two tools of monetary policy.These are qualitative credit control and quantitative control. The1st control is measure of influence the allocation of credit.The 2nd is control in which supply of money is cotrolled quantitativly.