Answer:
The Correct Statement is "Discretionary fiscal policy is less effective than is implied by the early Keynesian view".
Explanation:
The growth within the government spending once the budget is in the recession is operative to extend and to the financial gain. However, not decline the rate of interest. The budget throughout recession is during a liquidity deception. The rate of interest is at lowest and also the LM curve is horizontal at small levels of financial gain.
The growth within the government spending ends up in a rightward move of the IS curve that will increase the financial gain. This is often as a result of that the rate of interest is at such a coffee level that the rise within the speculation by the govt. couldn't displace the non-public asset.
Conversely, the Keynesian or non-Keynesian approve that economic policy has its restriction to extend the financial gain throughout a recession.
The unrestricted economic policy has downside to extend the extent of financial gain because it could be a move of the supply of asset from non-public organization to public organization.
Answer:
The correct answer is:
1 - Singapore
2 - Chile
3 - Ireland
4 - USA
5 - China
Explanation:
An open economy is one that carries out commercial interaction with the outside world. In other words, it buys and sells goods, services or financial assets with the rest of the world economies.
With the consolidation of international trade in recent decades and the phenomenon of globalization, this concept has reached its maximum expression, with economies more exposed to import and export as the basis of its economic model and with greater weight in its GDP. In this sense, it could be said that a closed economy is something currently utopian, since no country currently strictly complies with its theoretical requirements.
The most common procedure to open an economy is the assumption of trade agreements between countries, which regulate and control the entry and exit of goods and services, creating trade routes that can be expanded later in terms of economic integration.
Built-in stabilizers are done by the government to ensure the balance in the economy. The budget during deficit increases during a recession and also a budget increase in surplus comes during an expansion. It is an economic strategy reaction to deal with situations in the world market.
