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Contractionary fiscal policy is a decrease in government purchases,increase in net taxes,or some combination of the two aimed at reducing aggregate demand enough to return the economy to potential output without worsening inflation,fiscal policy used to close and expansionary gap by Jins JAMES e-mail jinsjames1@gmail.com
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∙ 14y ago
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What is effective policy?
The date as shown in the Certificate of Insurance, when coverage under this policy commences.
What should The wealth effect be shown as graphically a?
shift of the consumption schedule
What causes the demand curve to move?
Increases in demand are shown by a shift to the right in the demand curve. This could be caused by a number of factors, including a rise in income, a rise in the price of a substitute or a fall in the price of a complement.
Advantages and disadvantages of government using fiscal or monetary policy?
1.Capital formation: Fiscal policy has played a very important role in raising the rate of capital in country-in private as well as public sector. A major part of budgetary resources has been invested in Public Sector enterprises which have resulted in increase in gross domestic capital formation as percent of GDP from 10.2 percent in 1950-51 to 22.9 in 1997-98 and to 23.7 percent in 2001-02.2. Resource Mobilisation: - Fiscal policy has helped to mobilize resources through taxes, savings, public debt etc. for economic development of the country. Resources mobilisation which was 70% in 1965-66 has increased to 90% in 2001-2002.3. Incentives to Private Sector: - Private sector has been encouraged under fiscal policy for investment and production. Tax concessions, such subsidies exemptions in taxes have been given as incentives to private sector units set up in backward areas and expert oriented units. Similarly subsidies and tax concessions have also been given to encourage imports and as a result it has affected exports and imports of the country.4. Encourage Savings: - Various incentives have been given to raise the rate of savings in household and corporate sector. To encourage savings in household sector various concessions and tax benefits have been given on fixed deposits, life insurance schemes, Kisan Vikas Patras (KVPs), National Saving Certificates (NSCs), provident funds etc. savings have been encourage in corporate sector by offering them tax concessions and tax exemptions.5. Poverty alleviation and Employment Generation: -To fulfill one of its major objectives of providing full employment, allocation of huge amount has been made in fiscal policy to eradicate poverty and generate employment. For this a huge amount has been spent on different schemes like twenty point programme, Integrated Rural Development Programme (IRDP), Jawahar Rpzgar Yojana (JRY) etc.6. Reduction in Inequality of Income and Wealth: -Fiscal Policy of the country has been making constant endeavour to reduce inequality of income and wealth. Resources have been mobilized from rich class to poor by way of progressive taxes, wealth tax, corporation tax and capital gain tax etc. and this money has been utlised for the welfare of poor people.7. Export Promotion: - Export has been encouraged by way of providing subsidies, concessions, tax exemptions, cash subsidies etc. Exports have shown a rise from 4.5 percent in 1960-61 to 23.4 percent in 2001-2002. Import duty on raw material and capital goods used for production of goods meant for export has also reduced with a view to encourage exports.Read more: Advantages_of_fiscal_policy
Do countries need a central bank?
No A central bank is a phenomenon of more developed countries. It has been shown that a central bank can conduct discretionary monetary policy (policy using their discretion and not simple rules) and obtain lower inflation rates than the government would. In fact, the government can overturn any decision made by the CB if it wanted to
What was Peter Temin's main criticism of the Keynesian explanation for the Great Depression?
As far as I'm aware, Temin builds on the Keynesian view that the great depression was the result of a contraction of components of aggregate demand (and not the result of money supply as Friedman and Schwarz suggest). Investment is taken to be the primary propagation mechanism, whose reduced levels are the result of contractionary monetary policy. The way in which Temin builds on this is to explain the reasons behind the contractionary monetary policy of the US (and indeed contractionary fiscal policy)that caused lower demand (shown by a shift to the left of the IS curve). In his later work, and in conjunction with Eichengreen, Temin suggests that it was the international Gold Standard monetary system that was the reason behind such inadequate monetary and fiscal policies. The gist of the argument is that the Gold Standard had an inherent deflationary balance, which, pre WWI, had not proved such a problem due to various factors specific to that period e.g. the clear position of Britain as leader: to be followed on interest rates, who would act as international lender of last resort, and take countercyclical actions. Thanks to WWI the situation had changed, such that by abiding by the gold standar
Can the polar shift end the world?
No. Studies have shown that species can adapt to such a shift.
What period of time is the income statement?
Income statement can be made for any period of time but normally it is one fiscal year and all expenses and incomes related to that fiscal period is shown.
Define the form of language shown by the following sentence The company will be downsizing in the next fiscal year?
Double speak
What is effective policy?
The date as shown in the Certificate of Insurance, when coverage under this policy commences.
Is Motor Vehicles shown on a balance sheet?
If motor vehicles own by company and are usable for more than one fiscal year then these are fixed assets and shown in balance sheet
What should The wealth effect be shown as graphically a?
shift of the consumption schedule
What is policy effective date?
The date as shown in the Certificate of Insurance, when coverage under this policy commences.
What is the policy effective date?
The date as shown in the Certificate of Insurance, when coverage under this policy commences.
What is a long term asset?
Long term assets are those assets which are purchased to be use in business for more than one fiscal year and which are used for more than one fiscal year for revenue generation and all assets whether current or long term are shown in balance sheet of business.
What accounts are closed to income summary at the end of the fiscal year?
All Sales and Expense accounts are closed and the balancing figure is shown on the Balance Sheet.
Where is inventory on a balance sheet?
Inventory is normally used within one fiscal year that is why it is current asset of business and shown in asset side of balance sheet.
