Ebook Macroeconomics for today (6th edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Macroeconomics for today (6th edition): Part 2
Ebook Macroeconomics for today (6th edition): Part 2
CHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2nd aggregate demand and boost national output and employment in order to end the recession of 1980-1981. In the 1990s, a key part of President Bill Clinton's economic program was to stimulate economic growth by boosting government spending on long-term investment. This investment program included hi Ebook Macroeconomics for today (6th edition): Part 2ghways, bridges, fiber-optic communications networks, and education. In 2001, the United States experienced a recession, and President George w. BushEbook Macroeconomics for today (6th edition): Part 2
proposed and signed into law a tax cut in order to stimulate the economy. And in 2003, another tax cut bill was passed to create jobs and stimulate ecCHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2 would enable the economy to avoid a recession.0 l>jvid Muir/DiỊỉital Vi.il ■Ii.tirtty hruptvFiscal policy is one of the major issues that touches everyone's life. Fiscal policy is the use of government spending and taxes to influence the nation's output, employment, and price level. Federal governm Ebook Macroeconomics for today (6th edition): Part 2ent spending policies affect Social Security benefits, price supports for dairy farmers, and employment in the defense industry. Tax policies can chanEbook Macroeconomics for today (6th edition): Part 2
ge die amount of your paycheck and therefore influence whether you purchase a car or attend college.Using fiscal policy to influence the performance oCHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2cy from the viewpoint of two opposing economic theories. First, you will study Keynesian demand-side fiscal policies that "finetune" aggregate demand so that die economy grows and achieves full employment with a higher price level. Second, you will study supply-side fiscal policy, which gained282htt Ebook Macroeconomics for today (6th edition): Part 2ps://khothuvien.cori!prominence during the Reagan administration. Supply-siders view aggregate supply as far more important than aggregate demand. TheEbook Macroeconomics for today (6th edition): Part 2
ir fiscal policy prescription is to increase aggregate supply so that the economy grows and achieves full employment with a lower price level.In this CHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2ulus to economic growth?•Can Congress fight a recession without taking any action?•How could one argue that the federal government can increase tax revenues by cutting taxes?Discretionary Fiscal PolicyHere we begin where the previous chapter left off—that is, discussing the use of discretionary fisc Ebook Macroeconomics for today (6th edition): Part 2al policy, as Keynes advocated, to influence the economy’s performance. Discretionary fiscal policy is the deliberate use of changes in government speEbook Macroeconomics for today (6th edition): Part 2
nding or taxes to alter aggregate demand and stabilize the economy. Exhibit 1 lists three basic types of discretionary fiscal policies and the correspCHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2ggregate demand by following an expansionary fiscal policy. T he second column lists contractionary fiscal policy options the government can use to restrain aggregate demand.Increasing Government spending to Combat a RecessionSuppose the U.S. economy represented in Exhibit 2 has fallen into recessio Ebook Macroeconomics for today (6th edition): Part 2n at equilibrium point El, where aggregate demand curve AD| intersects the aggregate supply curve, AS, in the ncar-full-employmcnt range. (Note that fEbook Macroeconomics for today (6th edition): Part 2
or simplicity the aggregate demand and aggregate supply curves are drawn here as straight lines.) rhe price level measured by the CPI is 150, and a reCHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2proach the president and Congress can follow is provided by classical theory, rhe classical economists’ prescription is to wait because the economy will self correct to full employment in the long run by adjusting downward along AD|. But election time is approaching, so there is political pressure t Ebook Macroeconomics for today (6th edition): Part 2o do something about the recession now. Besides, recall Keynes’s famous statement, “In the long run, we are all dead.” Hence, policymakers follow KeynEbook Macroeconomics for today (6th edition): Part 2
esian economics and decide to shift the aggregate demand curve rightward from AD| to AD2 and thereby cure the recession.How can the federal governmentCHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2 not directly under the government’s control as is government spending (G). After all, there is always a long wish list of spending proposals for federal highways, health care, education, environmental programs, and so forth.I Fiscal policyThe use of government spending and taxes to influence the na Ebook Macroeconomics for today (6th edition): Part 2tion’s spending, employment, and price level.Discretionary fiscal goWey_____________—The deliberate use of changes in government spending or taxes toEbook Macroeconomics for today (6th edition): Part 2
alter aggregate demand and stabilize the economy.283284PART 4MACROECONOMIC 1HL0RYAND POLICYDiscretionary Fiscal PoliciesExpansionaryFiscal PolicyContrCHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expan Ebook Macroeconomics for today (6th edition): Part 2esDecrease government spendingCHAPTERFiscal PolicyIn the early 1980$, under President Ronald Reagan, the federal government reduced personal income tax rates. The goal was to expanGọi ngay
Chat zalo
Facebook