Questions from Macroeconomics

Q: Give a numerical example to illustrate the difference between complete crowding out

Give a numerical example to illustrate the difference between complete crowding out and incomplete crowding out.

Q: The debate over using government spending and taxing powers to stabilize the

The debate over using government spending and taxing powers to stabilize the economy involves more than technical economic issues. Do you agree or disagree? Explain your answer.

Q: Is crowding out equally likely under all economic conditions? Explain your

Is crowding out equally likely under all economic conditions? Explain your answer.

Q: Tax cuts will likely affect aggregate demand and aggregate supply. Does

Tax cuts will likely affect aggregate demand and aggregate supply. Does it matter which is affected more? Explain in terms of the AD-AS framework.

Q: Explain how, under expansionary fiscal policy, expansionary fiscal policy can

Explain how, under expansionary fiscal policy, expansionary fiscal policy can, , destabilize the economy.

Q: How might the price of corn affect the supply of wheat?

How might the price of corn affect the supply of wheat?

Q: Identify and explain the five lags associated with fiscal policy.

Identify and explain the five lags associated with fiscal policy.

Q: How much were government expenditures in2013? How much were government tax

How much were government expenditures in2013? How much were government tax revenues in 2013?

Q: Suppose the economy is in a recessionary gap, and both Smith

Suppose the economy is in a recessionary gap, and both Smith and Jones advocate expansionary fiscal policy. Does it follow that both Smith and Jones favor so-called big government?

Q: Will tax cuts that the public perceives to be temporary affect the

Will tax cuts that the public perceives to be temporary affect the SRAS and LRAS curves differently than tax cuts that are perceived to be permanent? Explain your answer.