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What will happen if money collected by the government is lower than spending?
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∙ 10y ago
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james lopaj
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In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
Why will the baby-boomer generation be a potential problem for government spending?
the ratio of workers to retirees will be low, which will lower the income tax base from which to fund Social Security
How do government taxation for consumption spending and importing goods for short term consumption affect economic growth?
Government taxation for consumption spending and importing goods for short-term consumption weakens the economic growth. An increase in imports results in a lower GDP and, consequently, economic loss as money is spent and funneled out of the country.
What can the federal government do to try to bring the economy out of recession?
the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.
What change is definitely predicted to lower Real GDP in the short run?
A decrease in aggregate demand, an increase in the reserve requirement, an increase in the discount rate, increase in interest rates, a decrease in government spending.
Under what circumstances would the government most likely lower taxes?
Consumer spending has decreased recently.
How would the government most likely respond to decrease in consumer spending?
Lower taxes to make it easier for consumers and business to spend money.
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
What will increased consumer spending?
Consumer spending is called consumption, which is a component of Aggregate Demand in our economy. In monetary policy, the Federal Reserve can buy treasuries, lower the reserve requirement, and lower the discount rate which will increase consumption. In fiscal policy, the government can cut taxes to increase consumer spending.
Are Republicans more conservative?
Yes. Republicans are the party that wants to lower taxes and spending and make the government smaller to allow individual freedom.
Why did houston cut government spending in his second term?
he eliminated dozens of government positions and cut the size of the army; he tried to sell navy ships
Why will the baby-boomer generation be a potential problem for government spending?
the ratio of workers to retirees will be low, which will lower the income tax base from which to fund Social Security
Identify the two policies that the federal government can follow in order to make the business cycle less disruptive?
federal government can lower interest rates and stimulate spending to make the business cycle less disruptive.
How did Jefferson's accomplishment of lowering government spending affect American history?
Lower then what? The only other budget was under Washington and Adams. The Government was too new to have much of a budget.None of the early Presidents wanted a large budget.
How do government taxation for consumption spending and importing goods for short term consumption affect economic growth?
Government taxation for consumption spending and importing goods for short-term consumption weakens the economic growth. An increase in imports results in a lower GDP and, consequently, economic loss as money is spent and funneled out of the country.
What can the federal government do to try to bring the economy out of recession?
the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.
Is Gasoline collected at a lower temperature than is diesel oil?
true
