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Q: Why is the government decision to increase or decrease spending a matter of macroeconomic policy?
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Does Pakistan follow expansionary fiscal policy?

Fiscal policy is the manipulation of taxation and government spending by the government to affect the economy . Expansionary fiscal policy is when the government what to increase aggregate demand by decrease taxation.Pakistan does not use expantionary fiscal policy because Pakistan have highly economic growth and macroeconomic stability but also some poverty reduction(increase in standard of living)


When would an increase in government purchases be an appropriate countercyclical fiscal policy?

A decrease in government spending and increase in taxes.


Why is it difficult for the federal government to increase or decrease spending?

Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)


How can federal government affect fiscal policy?

Generally speaking the fiscal policies of the US Federal government are related to the monetary policies of the US Federal Reserve System. With that said, US fiscal policies of the Federal government can affect the economic situation of the US. The Federal government can do the following to influence the US economy, all of which are meant to improve the economy, however, that may not be the intended result. Here are some but not all examples of how the economy of the US can be affected by the Federal government:* Increase or decrease income taxes on personal and corporate income;* Increase or decrease gasoline taxes;* Increase or decrease tariffs;* Increase or decrease capital gains taxes ( part of income taxation );* Increase or decrease social security payments;* increase or decrease certain Medicare prices (costs )* increase or decrease Federal employment policies;* increase or decrease social spending in terms of food stamps as an example; and* Increase or maintain current levels of the national debt ceiling.


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.

Related questions

Does Pakistan follow expansionary fiscal policy?

Fiscal policy is the manipulation of taxation and government spending by the government to affect the economy . Expansionary fiscal policy is when the government what to increase aggregate demand by decrease taxation.Pakistan does not use expantionary fiscal policy because Pakistan have highly economic growth and macroeconomic stability but also some poverty reduction(increase in standard of living)


Did john marshall increase or decrease federal government power?

Increase: he was a Federalist


When would an increase in government purchases be an appropriate countercyclical fiscal policy?

A decrease in government spending and increase in taxes.


Why is it difficult for the federal government to increase or decrease spending?

Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)


How can federal government affect fiscal policy?

Generally speaking the fiscal policies of the US Federal government are related to the monetary policies of the US Federal Reserve System. With that said, US fiscal policies of the Federal government can affect the economic situation of the US. The Federal government can do the following to influence the US economy, all of which are meant to improve the economy, however, that may not be the intended result. Here are some but not all examples of how the economy of the US can be affected by the Federal government:* Increase or decrease income taxes on personal and corporate income;* Increase or decrease gasoline taxes;* Increase or decrease tariffs;* Increase or decrease capital gains taxes ( part of income taxation );* Increase or decrease social security payments;* increase or decrease certain Medicare prices (costs )* increase or decrease Federal employment policies;* increase or decrease social spending in terms of food stamps as an example; and* Increase or maintain current levels of the national debt ceiling.


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.


An example of contractionary fiscal policy would be?

A decrease in government spending and increase in taxes


What are the two ways the federal government could respond to an increase in the economy?

raise income taxes and decrease government spending


How can the Federal government affect the fiscal policy?

Generally speaking the fiscal policies of the US Federal government are related to the monetary policies of the US Federal Reserve System. With that said, US fiscal policies of the Federal government can affect the economic situation of the US. The Federal government can do the following to influence the US economy, all of which are meant to improve the economy, however, that may not be the intended result. Here are some but not all examples of how the economy of the US can be affected by the Federal government:* Increase or decrease income taxes on personal and corporate income;* Increase or decrease gasoline taxes;* Increase or decrease tariffs;* Increase or decrease capital gains taxes ( part of income taxation );* Increase or decrease social security payments;* increase or decrease certain Medicare prices (costs )* increase or decrease Federal employment policies;* increase or decrease social spending in terms of food stamps as an example; and* Increase or maintain current levels of the national debt ceiling.


Does heat increase or decrease thermal energy?

increase


Does x increase or decrease making the y increase or decrease?

no. :)


Does increase of inventory increase or decrease cash flow?

When adjusting your cash flow statement, you increase (add) a decrease of inventory and decrease (subtract) an increase of inventory