chp 11 – only 4 questions
1)Fiscal Policy)Definefiscal policy. Determine whether each of the following, other factors held constant, would lead to an increase, a decrease, or no change in the level of real GDP demanded:
A decrease in government purchases
B.An increase in net taxes
C.A reduction in transfer payments
D.A decrease in the marginal propensity to consume
9) What did classical economists assume about the flexibility of prices, wages, and interestrates?What did this assumption imply about the self-correcting tendencies in an economy inrecession?What disagreements did Keynes have with classical economists?
chptvl 2)Why does the budget require a forecast of the economy?Under what circumstances would actual government spending and tax revenue fail to match the budget as approved?
5)What has happened to federal debt since 2008 as measured relative toGDP?
Answer the questions as numbered . please use correct method of numbering. answers should be in complete brief sentences. do not forget references that should have seperate page.