Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to recover from the negative effects of this COVID‐19 pandemic.

Q: Explain how the fiscal policy tools used by the federal government should work in terms of fighting…

A: There are two tools of fiscal policy of any country. First is expenditure and second is taxes.…

Q: Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to…

A:

Q: Willam H. Branson" of "Macroeconomic Theory and policy" states that the "Fiscalist Model is an…

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Q: Refer to the figure above. A Keynesian fiscal policy to eliminate a recessionary gap can be…

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Q: Suppose the economy is in recession. Policymakers estimate that aggregate demand is $100 billion…

A: Multiplier is equal to 1/(1-MPC), where MPC is the marginal propensity to consume. Multiplier =…

Q: Determine how each of the following monetary or fiscal policy would shift the aggregate demand…

A: a. Assuming the economy is currently producing above the full employment output, the government…

Q: Suppose this economy is in long-run equilibrium, as shown in the graph. Consider an exogenous…

A: Is lm model shows the two markets in equilibrium one is goods market which represents by IS . Each…

Q: Show and explain how an expansionary fiscal policy can cause crowding-out effect by using aggregate…

A: With expansion of fiscal policy is the policy used to boost the economy through increase in the…

Q: ontrast the effectiveness of fiscal policy in the BKM and AD-AS models.

A: The aggregate demand curve shows the inverse relationship between interest rate and the total…

Q: If the economy is in an expansionary mode just coming out of a recession, in regards to aggregate…

A: If the economy is in expansionary mode, then the government spendings would have been high or the…

Q: Assume that in a hypothetical country, coal mining is a significant industry, hiring a high…

A: During a downturn, expansionary fiscal policy is employed to push the country. It improves economic…

Q: Right now many economies in the world are experiencing a downturn due to the Corona Virus. a) What…

A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only the…

Q: Our macroeconomic model suggests that after a decline in aggregate demand like that of 2007, the…

A: "GDP (gross domestic product) measures the value of all finished goods and services produced within…

Q: The outbreak of COVID-19 pandemic in 2020-21 has had a significant impact on the Australian economy.…

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: Q.3.2 Explain, using the AD-AS model, how the South African Government can use fiscal policy as a…

A: Under various situations of uncertainty, there are various tools available before a government to…

Q: Suppose that the fiscal policy multiplier is 8.6. What is MPC? Use that MPC and assume that there is…

A: The value of MPC can be calculated as follows. The value of MPC is 0.883721.

Q: SRAS PL2 PL AD, AD Y, Y2 REAL GDP he Aggregate Demand Model shows an increase in ggregate Demand or…

A: In the given model Aggregate Demand is increasing. In an Expansionary Fiscal Policy, AD increases…

Q: Expansionary fiscal policy refers to (increases, decreases) in government spending or ases,…

A: In expansionary fiscal policy, government cuts tax rates(income tax & corporate tax) and boost…

Q: In which situation would it make the most sense to send stimulus checks as an exapansionary fiscal…

A: Answer: Correct option: b (Forced shut-downs of the economy due to a health pandemic lead to a…

Q: To combat a recession, the Indian government enacts expansionary fiscal policy, which increases…

A:

Q: One of the main arguments against using Fiscal Policy is the crowding out effect. Suppose the…

A: Crowding out effect Crowding out effect can be defined as a situation when increase in interest rate…

Q: Suppose that autonomous consumption (a) is 300, private investment spending(I) is 420, government…

A: We know, from the basic macroeconomic identity, that  Y = C(Y - T) + I + G Here, we have I = 420, T…

Q: Create a graph with an aggregate demand curve and an aggregate supply curve in the short-run. Use…

A: An Aggregate Demand-Aggregate Supply model is a macroeconomic model that represents the incumbent…

Q: Expansionary fiscal policy refers to (increases, decreases) in government spending or icreases,…

A: Expansionary fiscal policy is used to increase the aggregate demand in an economy, while…

Q: Show the effect of the expansionary fiscal policy according to the new classical view by shifting…

A: Fiscal policy refers to the government policy regarding tax and government spending which stabilizes…

Q: Explain , using the AD - AS model , government can use fiscal policy as a tool to recover from the…

A: In order to reduce the negative impact of the pandemic, the government would need to use the…

Q: Diagram 1 Price Level 0 ADO AD₁ g g Q₁ Real GDP A. ADO. B. ADI. C. AD2. D. AD3 AS 11. Refer to…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Algonquin's equilibrium price level and real output? The initial equilibrium price level and real…

A: MPC = 0.33 Natural Unemployment rate = 4.5% Price level  (2010=100) Real GDP AD0 Real GDP AD1…

Q: Use the AS/AD diagram to show( graphically only) the short term and long term effects of restrictive…

A: Restrictive fiscal policy leads to the fall in the AD and recessionary pressure rises up in the…

Q: Consider a potential fiscal policy used to curb a recession. How could a consumer and business…

A: Fiscal policy refers to the policy of the government to control the money supply in the economy to…

Q: Draw an aggregate demand/aggregate supply graph of an economy in a Recessionary

A: Hey, thank you for the question, since there is multiple question posted, according to our policy we…

Q: Using the appropriate aggregate demand and supply diagram, show any one instance where conducting…

A: The aggregate demand shows the negative relationship between price level and real GDP where goods…

Q: Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to…

A: To revive any economy from the brink of recession there can two types of policies:- Expansionary…

Q: hat would you recommend the federal government due to close our current recessionary output gap? Use…

A: The economies around the globe are involved in various economic and financial activities. These…

Q: Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to…

A: The government can use fiscal policy to help improve the state of the economy. The policy can be…

Q: Show effect of expansionary fiscal policy in the short run and medium run. AS AD model using ISLM…

A: The aggregate demand is the downward sloping curve which sows the aggregate demand for all the goods…

Q: Discuss the current Fiscal Policy with the impact of the coronavirus on macroeconomics in place to…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: The recent economic recession was brought about by the Covid-19 pandemic. The pandemic brought along…

A: The recent economic recession which was brought about by the Covid-19 pandemic has been responsible…

Q: ich of the following is NOT the limitation to the use of discretionary fiscal policy to stabilize…

A: Discretionary fiscal policy is deliberate changes in the tax and expenditure policy of government.…

Q: Explain the aspects of expansionary and contractionary fiscal policy. During which phases of the…

A: Fiscal policy refers to the policy opted by the government in order to maintain price stability in…

Q: Assume that following relationships hold in the Ghanaian economy: C = 100 + 0.7(Y− T) I = 150 G = ?…

A: First we calculate equilibrium Y using G = 940: Y = C + I + G Y = 100 + 0.7(Y - 200) + 150 + 940 Y =…

Q: Fiscal policCy is purposet movements in designed to direct an economy.

A: Fiscal policy is a policy that the government uses to influence the economy. It aims at certain…

Q: n each of the following cases, calculate the spending multiplier and determine the size and shift of…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Figure 16-7 Price level P₁ P₂ P₁ LRAS LRAS (8 C SRAS, SRAS AD₁ AD₂ 0 Y₂ Ya Real GDP (trillions of…

A: Interest rate: - it is the percentage charge on the principal amount by a lender to a borrower.

Q: which of the following individuals would most likely favor an increase in government spending, as…

A: a and d would be opposed to tax cut.