Question

Policy is designed to shift the aggregate B) curve by the federal government changing its C) and D) policies. An E) fiscal policy would attempt to speed up the economy by shifting this curve to the F) . This would be accomplished by the government spending G) than it took received in taxes. Such a policy would result in a budgetary H) . Such a policy would be employed to get the economy out of a I) and fight the undesirable economic phenomenon of J).

Answer 1

There are no options included so I will give the answers as beat I can based on economic knowledge.

FISCAL policy is designed to shift the aggregate DEMAND curve by the federal government changing its SPENDING and TAXATION policies.

The government can influence the economy through fiscal policy. It does this by changing its taxation and spending policies to either increase economic growth or reduce overheating.

An EXPANSIONARY fiscal policy would attempt to speed up the economy by shifting this curve to the RIGHT. This would be accomplished by the government spending MORE than it took received in taxes. Such a policy would result in a budgetary DEFICIT .

With an expansionary policy, the government would increase it's spending such that it would be more than the taxation imposed. With the government spending more than they brought it from taxes, a budget deficit will result.

Such a policy would be employed to get the economy out of a RECESSION and fight the undesirable economic phenomenon of UNEMPLOYMENT.

When the economy is going through a recession, the economy will be facing a decline so in order to renew growth, the government would spend more to bring it out of a decline and therefore prevent or reduce unemployment.