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erma4kov [3.2K]
3 years ago
8

Expansionary fiscal policy relies on changes in tax collections and government spending to achieve a non inflationary level of e

mployment. Given this definition, what actions and projected consequences did President Obama enact to realize this goal? Include in your discussion economic conditions that existed prior to the 2008 election, i.e. the mortgage/real estate crisis, employment & unemployment, provisions President Obama used to offset the economic conditions, projected benefits vs projected detriments to the economy.
Business
1 answer:
oksian1 [2.3K]3 years ago
3 0

Answer:

Orthodox economic theory recommeds the use of countercyclical economic policy, this means:  

  • when the economy is in expansion, the government should use contractionary fiscal policy (higher taxes and spending cuts) to keep the economy from overheating
  • when the economy is in recession, as it was in 2008, the government should implement expansionary fiscal policy (lower taxes and spending increases) to aid economic recovery.

President Obama followed the theory and used expansionary fiscal policy to help the economy recover in 2008 and 2009. Expansionary fiscal policty basically consists in either tax cuts, or defitic-financed spending, or both.

Obama mostly used the latter to help people in need of welfare benefits due to unemployment, and to finance economic projects that could employ people.

While the deficit is something to worry about, the United States is a strong country, with a desirable currency: this means that the American government is unlikely to default on its debts, and investors are quick to lend money to it at low interest rates.

The projected benefits of the expansionary fiscal policy where obvious: more economic growth, which means less unemployment.

President Obama was also aided by the Federal Reserve, which implemented expansionary monetary policy (essentially increasing the amount of money that circulates in the economy).

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Answer:

Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception

Explanation:

Retained earning is the balance of a company's profit that is retained after the distribution of dividend declared to it's shareholders.

A company that makes profit at the end of a reporting period usually make dividend declaration to its shareholder. The accumulation of these declarations are then taken out of the profit earned by the company. The balance when dividends declared(since it's inception) by the company is taken out from its profit, including any net losses is known as retained earning.

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3 years ago
The cross-price elasticity of demand measures the a. percentage change in the quantity demanded of one good in one location divi
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Answer:

d. percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.

Explanation:

Price-demand elasticity measures the demand sensitivity of a good when a change in the price of another good occurs. For example, what happens to the demand for bread when the price of butter varies? This depends on the cross elasticity of demand since these goods tend to be complementary.

 The price elasticity of cross demand between two goods is easily calculated by a formula where the numerator is the change in the quantity of a good and the denominator is the percentage change in the price of the complementary good.

If the calculation of elasticity is greater than 1, it means that the amount demanded for bread is sensitive (elastic) to the price of butter and tends to vary sharply. If the result is between 0 and 1, the demand is inelastic, that is, the amount of bread demanded will not change considerably when the price of butter varies. If the calculation is equal to 1, then the demand for bread varies perfectly with the price of butter.

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An example of communicating category membership by relying on the product descriptor is ford's positioning of its freestyle auto
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That statement Is true

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The short-run aggregate supply curve implies that real output exceeds its long-run level when the price level is:
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Answer:

greater than the expected price level

Explanation:

The short run aggregate supply curve shows graphically that the real output is more than its long run level when the price level is more than expected price level. When there is great expectation about inflation it shifts the short run Aggregate Supply curve outwards or to the right. Price level would then rise in the long run but real output would stay the same or unchanged.

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3 years ago
The sarbanes-oxley act created the ____ to protect the interests of investors and further"
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Answer:

federal laws

Explanation:

The sarbanes-oxley act is a Federal legislation that was passed in the US on 30th July 2002. to reform, protect the accounting and corporate financial sector which includes the interest of the investors. Note: an act consist of written laws and it is made by the legislative arm of the government.

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