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What is efforts of the federal government to keep the economy stable by increasing or decreasing taxes and or government spending?
Wiki User
∙ 11y ago
increase taxes and and spend systematically
Wiki User
∙ 11y ago
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Which action has an expansionary effect on the economy?
Increasing government spending
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
HOW Does the government typically change fiscal policy to try to improve the us economy during a recession?
Normally in a recession the government would want to raise the equilibrium level of income. This can be done in one of two ways: by increasing government spending or by decreasing taxes.
What is an economy that experiences decreasing real GDP and increasing prices suffering from?
An economy that experiences decreasing real GDP and increasing prices suffering from stagflation.
Government can influence the economy by regulating what?
There are many ways government regulation can influence the economy. Probably the most dramatic way is by increasing or decreasing the amount of money -- the money supply. unsafe working conditions
Which action has an expansionary effect on the economy?
Increasing government spending
How is fiscal policy controlled?
Taxes, and government spending. Increasing taxes will decrease consumption and supply. Lowering taxes will increase consumption and supply. Increasing government spending will increase national consumption, and decreasing government spending will decrease national consumption. The economics AD-AS model shows a visual representation of the effects of fiscal policy on the economy if you are further interested.
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
HOW Does the government typically change fiscal policy to try to improve the us economy during a recession?
Normally in a recession the government would want to raise the equilibrium level of income. This can be done in one of two ways: by increasing government spending or by decreasing taxes.
What is an economy that experiences decreasing real GDP and increasing prices suffering from?
An economy that experiences decreasing real GDP and increasing prices suffering from stagflation.
Do Keynesian economist believe that the economy is self regulating?
No, they regulate the economy by doing 2 things: 1)increasing government spending and decrease taxes to fight recession 2) decrease government spending and increase taxes to fight inflation.
Government can influence the economy by regulating what?
There are many ways government regulation can influence the economy. Probably the most dramatic way is by increasing or decreasing the amount of money -- the money supply. unsafe working conditions
Are car insurance costs increasing or decreasing in this economy?
Car insurance is increasing at a rate of 1.4% as of 2009.
Is smoking increasing or decreasing in developing countries?
Yes smoking is decreasing in other countries because of the economy crisis
How will the government policy of increasing federal state or local taxes could eventually lower inflation?
if inflation is increasing that means the economy is over producing and that the economy has an inflationary gap which means the equilibrium GDP(where total spending is equal to total production) is greater then potential GDP(full employment GDP). Increasing taxes will reduce the disposable income that consumer have which will then reduce consumer expenditure(which is one of the components of GDP or aggregate demand). This will lower the equilibrium GDP to be the same as potential GDP and will lower the equilibrium for the supply and demand graph for the entire economy to a lower price level reducing price levels. Reducing government spending or decreasing transfer payments will have the same affect on the economy.
An economy that experience decreasing real GDP and increasing prices is said to suffer from what?
stagflation
How does the government typically change fiscal policy to try to improve the U.S. economy during a recession?
increasing federal spending
