Countercyclical discretionary fiscal policy calls for Rating:
Factory farming is a controversial and highly debated topic in modern agriculture. It involves the mass production of animals for food, using techniques that are designed to maximize efficiency and profits, often at the expense of the welfare of the animals and the environment.
On one hand, factory farming can be seen as a necessary evil in a world with an increasing demand for affordable food. It allows for the production of large quantities of meat, eggs, and dairy products at relatively low costs, making these products more accessible to a larger portion of the population.
However, there are many negative aspects to factory farming that cannot be ignored. One major concern is the poor living conditions of the animals. In factory farms, animals are often kept in crowded, confinement systems where they are unable to engage in natural behaviors such as roaming, foraging, and socializing. This can lead to physical and mental suffering for the animals, and can also increase the risk of diseases and infections.
Factory farming also has significant environmental impacts. Large factory farms can produce vast amounts of animal waste, which can pollute air and water sources and contribute to greenhouse gas emissions. In addition, factory farms often rely on the use of synthetic fertilizers and pesticides, which can have negative impacts on soil health and ecosystems.
Furthermore, factory farming can contribute to the spread of diseases, as the close confinement of animals makes it easier for infections to spread. This can have serious consequences for both animal and human health. For example, the emergence of swine flu and avian influenza can be traced back to factory farming practices.
Overall, it is clear that factory farming has many negative consequences, both for the animals and for the environment. While it may provide an affordable source of food, it is important to consider the long-term costs of this type of agriculture and to consider alternative methods of food production that prioritize animal welfare and environmental sustainability.
Chapter 13 Principles of Macroeconomics Summary for study
Discretionary fiscal policy is so named because it: A is undertaken at the option of the nation's central bank. Thus, the C and I components of aggregate demand fall and the AD curve shifts left. Since the government is running a cyclically adjusted budget deficit, this fiscal policy is expansionary. Discretionary Fiscal Policy: government spending and tax changes enacted at the time of the problem to alter the economy. Fiscal policy refers to the deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level.
Its cyclically adjusted budget deficit? Thus the impact of the expansionary fiscal policy may be reduced. Economists refer to a budget deficit that exists when the economy is achieving full employment as a: cyclically adjusted deficit. What is counter cyclical fiscal policy quizlet? In this view the political process creates economic instability. Conversely, governments choose to reduce taxes and increase spending during recessions to stimulate the economy back to life. But interest does have to be paid. This policy is an automatic stabilizer.
Reducing Social Security and Medicare benefits for wealthier individuals. Believing that tax rates will rise again and possibly concerned that they will rise to rates higher than before the tax cut , households may instead save their additional after-tax income in anticipation of needing to pay taxes in the future. Attempt to reduce the intensity of economic fluctuations and smooth the growth rates of employment, GDP, and prices. LO1 When the economy enters a recession, net tax revenue falls. An economist who favored expanded government would recommend: increases in government spending during recession and tax increases during inflation. Ongoing policies are also intended to help an economy avoid the disruption of large shifts in wealth. D budget surpluses are continuously incurred.
Which of the following is true? If the economy's current aggregate demand curve is AD3, it is experiencing: a positive GDP gap. B the authority that the President has to change personal income tax rates. Last Word Which of the following would not help to relieve the Social Security and Medicare shortfalls? Which of the following statements about this government's fiscal situation are true? Extending the Social Security tax to a higher level of earnings. Discretionary fiscal policy refers to: intentional changes in taxes and government expenditures made by Congress to stabilize the economy. Refinancing the public debt simply means rolling over outstanding debt—selling "new" bonds to retire maturing bonds.
Countercyclical discretionary fiscal policy calls for A surpluses during
Discretionary fiscal policy will stabilize the economy most when: A deficits are incurred during recessions and surpluses during inflations. Increase aggregate demand from AD2 to AD3 by decreasing taxes. Label each of the following scenarios in which there are problems enacting and applying fiscal policy as being an example of either recognition lag, administrative lag, or operational lag. Retiring the debt means purchasing bonds back from those who hold them or paying the bonds off at maturity. How large is its budget deficit? The weight of the debt is not its absolute size. The size of the multiplier varies inversely with the level of GDP. Refer to the diagram, in which Qf is the full-employment output.
This policy can be applied to an entire population or to people at a certain income level. Countercyclical discretionary fiscal policy calls for c deficits during recessions and surpluses during periods of demand-pull inflation. An internally held debt is one in which the bondholders live in the nation having the debt; an externally held debt is one in which the bondholders are citizens of other nations. The amount by which government expenditures exceed revenues during a particular year is the: budget deficit. What fiscal policy would increase real GDP? LO6 There are two ways of measuring the public debt: 1 measure its absolute dollar size; 2 measure its relative size as a percentage of GDP.
Countercyclical discretionary fiscal policy calls for: A. deficits during both recessions and periods of demand
Thus the impact of the expansionary fiscal policy may be reduced. But paying off an internally held debt would not burden the economy as a whole—the money used to pay off the debt would stay within the domestic economy. What percentage of the U. The shift of the aggregate demand curve from AD3 to AD2 is consistent with:. How do economists distinguish between the absolute and relative sizes of the public debt? An increase in transfer payments to unemployed workers. What does discretionary fiscal policy refer to? Which of the following are tools of fiscal policy to positively stimulate the economy? LO6 Answer: There are two ways of measuring the public debt: 1 measure its absolute dollar size; 2 measure its relative size as a percentage of GDP.
Some politicians have suggested that the United States enact a constitutional amendment requiring that the Federal government balance its budget annually. A decrease in tax rates might be enacted to stimulate consumer spending. A political business cycle is the concept that politicians are more interested in reelection than in stabilizing the economy. Lenders expect that, and to pay the interest the government must either use tax revenues or go deeper into debt. If the economy's current aggregate demand curve is AD0, it is experiencing: a negative GDP gap.
Countercyclical discretionary fiscal policy calls for: a. surpluses during both recessions and periods of demand
Explain why such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession. When current tax revenues exceed current government expenditures and the economy is achieving full employment: the cyclically adjusted budget has a surplus. While fiscal policy is useful in combating the extremes of severe recession with its built-in "safety nets" and stabilization tools, and while the built-in stabilizers can also dampen spending during inflationary periods, it is undoubtedly not possible to keep the economy at its full-employment, noninflationary level of real GDP indefinitely. Indeed, if there were no interest to be paid on the debt and refinancing was automatic, there would be no debtload at all. Refer to the above diagram. Nevertheless, discretionary fiscal policy is a valuable tool in preventing severe recession or severe demand-pull inflation. As far as I understand, these policies were created to help protect the national economy from negative changes in the global economy.
A congressional proposal to incur a federal surplus to be used for the retirement of public debt. If aggregate demand curve AD2 describes the current situation, appropriate fiscal policy would be to do nothing since the economy appears to be achieving full-employment real output. While fiscal policy is useful in combating the extremes of severe recession with its built-in "safety nets" and stabilization tools, and while the built-in stabilizers can also dampen spending during inflationary periods, it is undoubtedly not possible to keep the economy at its full- employment, non inflationary level of real GDP indefinitely. What fiscal policy would increase real GDP? Refer to the diagram, in which Qf is the full-employment output. Restricting immigration of skilled working-age adults.