Worksheet5.fiscal policy and money

Worksheet5.fiscal policy and money - Introduction to...

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Introduction to Macroeconomics Econ 104a,c,d - Spring 2012 Worksheet 5 – Fiscal Policy, Money and the Federal Reserve Bank Due Thursday March 8 th on moodle 1. In fiscal policy, what are automatic stabilizers? Give two examples. In fiscal policy, automatic stabilizers are expenditures that automatically increase or taxes that automatically decrease when economic conditions worsen. Examples include income taxes and food stamps. 2. What is discretionary fiscal policy? Give two examples of recent discretionary policies that have been implemented during the current economic crisis of the last three years. Discretionary fiscal policy involves deliberate policy actions by the government. Examples of recent discretionary fiscal policies include tax cuts and increases, as well as spending increases and decreases. 3. Taxes play a large role in fiscal policy. How do economists differentiate/analyze the different types of taxes? (Hint: three of them, progressive….) 4. In our simple models, the multipliers are the same for all spending and all taxes. How do
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This note was uploaded on 04/04/2012 for the course ECON 104 taught by Professor Dolenc during the Spring '08 term at UMass (Amherst).

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Worksheet5.fiscal policy and money - Introduction to...

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