Quiz 17: Comparative Advantage, Exchange Rates, and Globalization

Business

Fiscal policy is the tool used by government to control and manipulate the economy. The main tools of fiscal policy are tax rates and government purchases. The government take decision for two different frameworks i.e.Mr. A believes that the target unemployment rate is 4%, while B believes the same to be 6%. Now, structural deficit will be there when there is no cyclical effect, and as per A's belief that target unemployment rate is smaller, so the structural unemployment is also

Fiscal policy is the tool used by government to control and manipulate the economy. The main tools of fiscal policy are tax rates and government purchases. The government take decision for two different frameworks i.e.

Fiscal policy is the tool used by government to control and manipulate the economy. The main tools of fiscal policy are tax rates and government purchases. The government take decision for two different frameworks i.e.In short-run framework the deficits are a necessary thing which help manage the situation which is going out of hand and has to be controlled, so deficits give them leverage and breathing space to implement the policies. But in