question archive 1)What was/is the best economic policy/decision in the UK from the last 50 years? 2)Is the strong job report indicative of Trump's good economic policy? 3)What is fiscal policy? How did it help America with recovering from their economy?

1)What was/is the best economic policy/decision in the UK from the last 50 years? 2)Is the strong job report indicative of Trump's good economic policy? 3)What is fiscal policy? How did it help America with recovering from their economy?

Subject:EconomicsPrice:2.88 Bought3

1)What was/is the best economic policy/decision in the UK from the last 50 years?

2)Is the strong job report indicative of Trump's good economic policy?

3)What is fiscal policy? How did it help America with recovering from their economy?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

1)There was the problem of recession, unemployment and tax receipt going down. To solve the problem of recession, the government increases its expenditure in such a manner that the IS curve shifts rightward that increases the rate of interest in such a way that the aggregate demand curve shifts rightward that increases both price level and output in an economy. And, the central bank increases its money supply in such a manner that the LM curve shifts rightward that decreases the rate of interest in such a way that the investment increases that causes the aggregate demand curve shifts rightward that increases both price level and output in an economy.

2)Technically, the strong job report is indicative of Trump's good economic policy but he is not solely responsible for it. When Trump got elected in November 2016, the Dow Jones and other major indices jumped simply based on investors and common citizens favorability towards Donald Trump knowing he is a business man and was likely to put policy into effect that would help business owners. It'd be difficult to say that he "caused" this spike, rather, a lot of people felt optimistic about him which fueled the growth. That said, he has lowered taxes, brought jobs back into the U.S, etc. which have contributed to the growth through his own policies. Therefore, yes, he is directly responsible for the growth from his good economic policy and no because the optimism in the market was not directly caused by him.

3)A policy which deals with the taxes and government spending thereby affecting economic conditions is known as fiscal policy. This policy influences employment, inflation, and economic growth.

In America, both the legislative and executive branches direct the fiscal policy. The American constitution specified two important purposes for taxation: providing for defense and for paying the debts of the government. The level of taxation had impacts of the aggregate demand and behaved as automatic stabilizers and helped America to recover from the recession.