Explain clearly..
Question 17 5 pts If the effective multiplier for fiscal policy is 2, how much change in government purchases would be required to close a $500 billion negative output gap, other things being equal? $1 trillion increase $250 billion decrease $250 billion increase $1 trillion decreaseD Question 18 5 pts Elements of fiscal policy that move the budget toward surplus as the economy expands and toward deficit as it contracts are called O crowding out effects automatic stabilizers O accommodating budget policy autonomous fiscal policyD Question 19 5 pts We would expect to see an increase in government spending lead to in planned aggregate expenditure and in real planned investment O decreases; increases increases; increases increases; decreases O decreases; decreasesD Question 20 5 pts Among the most important problems of implementing fiscal policy include all except which of the following? Correctly timing the desired fiscal stimulus, given the inevitable lags and forecasting errors O Assessing when policy actions should be reversed Determining how large a stimulus to apply O Determining how long a time lag to applyD Question 20 5 pts Among the most important problems of implementing fiscal policy include all except which of the following? Correctly timing the desired fiscal stimulus, given the inevitable lags and forecasting errors O Assessing when policy actions should be reversed Determining how large a stimulus to apply O Determining how long a time lag to applyD Question 16 5 pts How will a given increase in government spending have maximum effect? )If the Fed accommodates the fiscal policy by increasing interest rates If there is an equal increase in net taxes If the federal budget is adjusted to balance? If the Fed accommodates the fiscal policy by holding interest rates constant