This topic contains a solution. Click here to go to the answer

Author Question: The federal budget was in deficit from 1931 to 1939, except in the year 1937. Given this fact, ... (Read 55 times)

PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
The federal budget was in deficit from 1931 to 1939, except in the year 1937.
 
  Given this fact, how do you explain E. Cary Brown's statement, Fiscal policy, then, seems to have been an unsuccessful recovery device in the 'thirties-not because it did not work, but because it was not tried.

Question 2

Monetary policy has a ________ effect on aggregate demand in a(n) ________ economy, and fiscal policy has a ________ effect on aggregate demand in a(n) ________ economy.
 
  A) stronger; closed; weaker; open B) stronger; open; weaker; open
  C) weaker; open; weaker; open D) weaker; closed; weaker; closed



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bimper21

  • Sr. Member
  • ****
  • Posts: 309
Answer to Question 1

Economist E. Cary Brown is arguing that while the actual federal budget was mainly in deficit during the Great Depression, the cyclically adjusted federal budget was in surplus, except for one year. Cyclically adjusting the budget calculates what revenues and expenditures would have been, had the economy been producing an output equal to potential GDP. The deficits in the 'thirties were due to a precipitous decline in tax revenues, not a substantial increase in government expenditures. A substantial increase in government expenditures was needed to pull the economy out of depression, and this did not occur. As a result, one might argue that discretionary expansionary fiscal policy was not pursued during the Great Depression.

Answer to Question 2

B




PhilipSeeMore

  • Member
  • Posts: 561
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


Kedrick2014

  • Member
  • Posts: 359
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

For a complete list of videos, visit our video library