This assignment is for Module 9 and covers Chapter 29 from the text. Students should answer all questions. All questions
are of equal value.
Question 1
a) Based on the information in the text. Identify the four basic sources of federal government revenue.
b) Give an example of indirect taxes.
c) Based on the information in the text. Identify the three basic categories of federal government expenditures
(outlays).
d) Give an example of a transfer payment.
e) Explain the difference between a government’s deficit and its debt.
Question 2
a) Identify the two tools that a government can use to for a fiscal stimulus (expansionary fiscal policy).
b) Explain and use an AS/AD diagram to show the impacts of expansionary fiscal policy. Assume no supply side effects
occur as a result of this policy.
Question 3
If contractionary fiscal policy will reduce real GDP and ultimately cause some unemployment, why would a government ever
invoke such a policy? Explain and use an aggregate demand/supply diagram to illustrate. Assume no supply side effects
occur as a result of this policy.
Question 4
Briefly discuss the how a discretionary fiscal stimulus is hampered by three time lags.
Place this order with us and get 18% discount now! to earn your discount enter this code: special18 If you need assistance chat with us now by clicking the live chat button.