Top answers

How can expansionary fiscal policies support an economy in closing a deflationary/recessionary gap?

Expansionary fiscal policies expand aggregate demand (AD) by increasing government spending and/or decreasing income and corporate taxation. As a result, a recessionary (a.k.a. deflationary) gap, which is ca...
SB
8627 Views

Explain the effect of placing an indirect tax on the consumption of fast foods in the UK

Indirect taxation are taxes on expenditure and consumption. These are usually placed on demerit goods which are goods or services which are perceived to have a negative impact on society. A real world exampl...
MR
Answered by Max R. • Economics tutor
7121 Views

What is the Short Run Aggregate Supply curve and why is it upwards sloping?

Aggregate Supply is the total amount of real output produced in an economy in a given year. The Short Run Aggregate Supply (SRAS) curve looks as aggregate supply in the short run : the time period where all ...
PD
Answered by Parth D. • Economics tutor
12617 Views

Qd=420-30P. From this equation identify the slope of the demand function and calculate the price at 60 units.

In the general demand function Qd=a-bP, b is the slope. Therefore 30 is the slope of this demand function.When Qd=60 price is calculated by:60= 40-30P30P=420-6030P=360P=12
JB
Answered by Joanna B. • Economics tutor
2606 Views

Evaluate the effectiveness of Fiscal Policy in promoting economic activity during a recession.

Fiscal policy is the manipulation of government spending and taxation levels by the governing body of a nation to influence aggregate demand. Expansionary fiscal policy refers to the increase in government s...
CP
10093 Views