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Lowering taxes and raising government spending.
Social security measures taken by the govt. is an example of expansionary policy. Subsidies, Tax rate cuts etc are other examples...
There is a few example of expansionary fiscal policy. Some of the examples are tax cuts, rebates and increased spending.
What else can I help you with?
Explain the purposes of sales budget?
Sales budget is the most important budget while making the overall budget for the organization for a fiscal year. It is important in this sense that how would anybody make fiscal budget for organization if he don't know about how much to sale or what are the organization's sale would be. If you know the sales volume of units of product you want to sale in a fiscal year then you will make production budget according to that sales requirement in mind you will have production information in mind you will purchase raw material, hire labour according to requirements. So if you don't know about how much you want to sale then how would you budget other things and how would you compare your performance at the end of fiscal year.
What is the distinction between accounting policies and accounting basis?
A layman's answer. Policies provides guidance on how something is handled, judged, rated, ranked, executed, etc. Policy provides all concerned with direction on how to proceed. Example: my policy is to answer all questions in a layman's term. Basis amounts to "what is", or "to be", developed in order to comply with policy. For instance; the basis for our nation's policy on ransom is that to allow payment for acts involving hijacking/terrorism has been shown to encourage further activity of this nature. Our policy is to not pay ransom since it might contribute to further hijacking/terrorism acts. In accounting, such an example would be written as such: accounting policy allows for us of a two-year verses five-year depreciation schedule on the purchase of capital equipment. The accounting basis for this policy is that it would 1) decrease tax burden in the short term 2) retaining more company funds for use in capital improvements while 3) encouraging expenditure to expand the economy 4) providing job growth to 5) stimulate the economy.
What is the difference between cost of sales and expenses?
In accounting, cost of sales is what you payed for the goods you sold during that fiscal period. Expenses are any costs that were incurred from the business performing it's purpose. Like rent, utilities, upkeep, salaries, etc. would all be expenses where the cost of goods sold you would get from subtracting the goods you sold from your stock at the beginning of the fiscal period.
In California how long can you wait until you bill someone for services rendered?
I would say within the Fiscal Year. Otherwise why would you wait to bill someone for more than a year?, it could be interpreted as a condonation of the debt.
What would be the start date for filling your tax return for 2007?
Virtually all people use a calendar year as their accounting (or fiscal) year. Jan 01 through Dec 31.
Where is fiscal policy used?
Fiscal policy is used by the government mainly in the following ways; by taxation and spending. This is how it is done. To increase GDP, the government increases its budget, spends say $45 billion into the economy which is an expansionary policy. Whereas, if the government takes out $45 billion, it would mean a decrease in jobs, increased unemployment, this is known as contractionary.
An example of contractionary fiscal policy would be?
A decrease in government spending and increase in taxes
How does increasing money supply affect expansionary monetary policy?
Expansionary Monetary Policy is adopted by the monetary authorities to increase the money supply of an economy. If money supply is increasing, and central bank adopts an expansionary monetary policy, it would result in inflationary pressures.
Which action would be a change in the government's fiscal policy?
Which action would be a change in the government's fiscal policy
What is the aim of Fiscal policy?
One of the major uses of government fiscal policy is to create stability in the economy. To curb inflation would be another use of fiscal policy.
What does fisical policies deal with?
In economics, fiscal policy is the use of government spending and revenue collection to influence the economy. Fiscal policy can be contrasted with the other main type of economic policy,monetary policy , which attempts to stabilize the economy by controlling interest rates and the supply of money. The two main instruments of fiscal policy are government spending and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: * Aggregate demand and the level of economic activity; * The pattern of resource allocation; * The distribution of income. Fiscal policy refers to the overall effect of the budget outcome on economic activity. The three possible stances of fiscal policy are neutral, expansionary and contractionary: * A neutral stance of fiscal policy implies a balanced budget where G = T (Government spending = Tax revenue). Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. * An expansionary stance of fiscal policy involves a net increase in government spending (G > T) through rises in government spending or a fall in taxation revenue or a combination of the two. This will lead to a larger budget deficit or a smaller budget surplus than the government previously had, or a deficit if the government previously had a balanced budget. Expansionary fiscal policy is usually associated with a budget deficit. * A contractionary fiscal policy (G < T) occurs when net government spending is reduced either through higher taxation revenue or reduced government spending or a combination of the two. This would lead to a lower budget deficit or a larger surplus than the government previously had, or a surplus if the government previously had a balanced budget. Contractionary fiscal policy is usually associated with a surplus. Fiscal policy was invented by John Maynard Keynes in the 1930s.
During the severe recession of 2008-09 the US government embarked on an aggressive fiscal policy to try and end the downturn Most of the increase in spending would be financed by borrowing the gove?
The full question:During the severe recession of 2008-09 the US government embarked on an aggressive fiscal policy to try and end the downturn. Most of the increase in spending would be financed by borrowing; the government is also cutting taxes for many, but not all, Americans. At the time the policy was formulated many economists were confident that the policy would be effective, while another group was quite convinced that the policy would do little to raise the level of GDP. Discuss under what financing and economic conditions an expansionary fiscal policy could be expected to raise the level of real GDP, and under what conditions the policy would fail. Then state your opinion as to whether or not the US policy will work.
Should you increase taxes or cut taxes?
This is a politically charged subject, so this is highly debatable. But, I will tell you it is generally more helpful to cut taxes in a recession and raise taxes in an inflationary period.The reason you want to cut taxes in a recession(or just stick with an expansionary fiscal policy) is to increase Aggregate Demand is gain a state of growth.You would want to raise taxes in an inflationary period(or just have a contradictory fiscal policy) is to decrease inflation which is probably caused by too much demand. China is a great example!
What is a macroeconomics question?
"Macroeconomics" refers to the study of how national or regional economies allocate scarce resources. Seeing as this is one of the broadest topics in economics, there are a great many questions that deal with it. These can be questions that ask the difference between different indicators, questions that ask what the monetary policy would be in a given situation, or questions that deal with macroeconomic history. Here are a few sample questions: 1) What is the difference between RGDP and NGDP? 2) What is an example of expansionary fiscal policy? 3) What is one contribution of Keynes to modern fiscal policy? 4) Why is a production possibility curve usually bowed outward?
What is a macroeconomic?
"Macroeconomics" refers to the study of how national or regional economies allocate scarce resources. Seeing as this is one of the broadest topics in economics, there are a great many questions that deal with it. These can be questions that ask the difference between different indicators, questions that ask what the monetary policy would be in a given situation, or questions that deal with macroeconomic history. Here are a few sample questions: 1) What is the difference between RGDP and NGDP? 2) What is an example of expansionary fiscal policy? 3) What is one contribution of Keynes to modern fiscal policy? 4) Why is a production possibility curve usually bowed outward?
If policy makers are worried about inflation what would be a correct fiscal policy change?
A fiscal policy solution to inflation would be to either increase taxes or decrease government spending.increase the tax rate
How do you distinguish fiscal policy from monetary policy?
Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.
