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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.
What is contracyclical fiscal policy?
When any government uses the fiscal policy as an instrument for Economic stability of the country, this fiscal policy should be contra-cyclic in nature.1) The government can rise the level of employment, income and economic activity by resorting to a deficit budgeting (more expenditure than the income from taxes). this is called as an expansionary fiscal policy.2) conversely, government can resort to the contractionary policy by contracting the employment and income by the surplus budgeting (tax income is more than the expenditures).To use the fiscal policy as an instrument for economic stability, the government should keep in mind the above mentioned courses of actions in different economic scenarios (Inflation and deflation).INFLATION.If for example there is an inflationary condition in a country, the foremost step of the government should be to check the money in circulation at its part. it should go for a surplus budgeting and therefore it will contract the employment and reduce the disposable income with the public. If the step of government is the opposite one it ll lead to severe price hike.DEFLATION.In deflationary condition the government should induce more income into the market by stimulating the employment thereby resuming the economic activity. If at this stage the government shows reluctance in resuming the economic activity the economy of that particular nation will face depression, which is in no sense in the favour of a nation.If a suitable fiscal policy is employed in Inflation and Deflation, these fiscal policies are called as CONTRA-CYCLICAL FISCAL POLICIES.
What is an economic condition marked by a drastic decline in production and sales and a severe increase in unemployment?
Depression.
Was the severe rise is in unemployment caused by the Great Depression?
the rise of unemployment was because of the great depression because the owners didn't need workers when the stock market crashed.
Fewer jobs are available and unemployment is rising during an?
Fewer jobs are available and unemployment rise during a recession. If the recession becomes severe or long term it is then termed a depression.
Is it legal to collect unemployment benefits while you are in jail in Ohio?
Unemployment is designed for those ready, willing, and able to work, a status which you clearly do not hold if you are incarcerated. The penalty for lying or misrepresenting yourself to receive unemployment benefits can be severe and is known as benefits fraud - it may include fines and jail time.
Where do you go for help if your unemployment runs out in weeks and your husband also is on unemployment and you have severe trouble paying bills?
You can go to the bank and ask for help and maybe they will refer you. The county Welfare Department and they can offer you food stamps and pay your housing or rent.
What is a severe continued economic downturn?
A severe continued economic downturn refers to a prolonged period of negative economic growth characterized by high unemployment rates, declining consumer spending, and reduced business investment. It often leads to widespread financial distress for individuals and businesses, resulting in bankruptcies and foreclosures. Such downturns can be triggered by factors like financial crises, global events, or significant policy failures, and they can have lasting impacts on economic recovery and stability.
In the mid 2000s what was the unemployment rate of Zimbabwe?
In the mid-2000s, Zimbabwe experienced a severe economic crisis, leading to extraordinarily high unemployment rates. By 2005, estimates indicated that unemployment was around 70% to 80%. The economic instability, hyperinflation, and land reform policies significantly contributed to job losses and a decline in formal employment opportunities during this period.
What is the definition of financial depression?
Financial depression is a severe and prolonged economic downturn characterized by high levels of unemployment, reduced consumer spending, and overall economic hardship.
By 1932 what percentage of American workers were unemployed?
During the Great Depression in 1932, the unemployment rate in the United States peaked at 24.9%, which means around 1 in 4 workers were unemployed. This high level of unemployment contributed to severe economic hardship and widespread suffering.
What are penalties for Louisiana unemployment fraud?
In Louisiana, unemployment fraud can result in severe penalties, including repayment of improperly received benefits, fines, and potential criminal charges. Offenders may face a monetary penalty of up to 200% of the overpaid amount and could also be subjected to civil lawsuits. Additionally, individuals found guilty of unemployment fraud may be disqualified from receiving future unemployment benefits and could face imprisonment for more serious offenses.
