a?Identify the effects of fiscal policy on the economy. b) Explain the role of t
ID: 1158644 • Letter: A
Question
a?Identify the effects of fiscal policy on the economy.
b) Explain the role of the Presidency and the Congress in the budget process.
c) Evaluate the economic impact of current and future Federal budgets.
Please note: A real-world example refers to an actual person, workplace, event, etc. Also note: If you use the words if or suppose in your real-world example, then it is unlikely to be real-world example.
Include one properly cited reference (quote or paraphrase) from our course text or a peer-reviewed source.
Explanation / Answer
Answer:
Fiscal policy is a weapon to the Federal. It is related with budget. Through this policy, necessary changes are incorporated in the budget. Tax revenue and budget expenses are increased or decreased. Tax increase will reduce disposable income. So consumption will decrease. It will reduce commodity demand of the economy. It is effective in inflation to check it. Increase in government expenses will increase demand of commodities. Production will grow. Economy will be better off.
Increase in expenditure or decrease in tax is expansion policy. Just opposite is contraction. It is very effective to pool out economy from depression.
Presidency and congress have specific role in connection with formulation of budget. President places the budget to Congress requesting for its finalization and approval. This request is made in February. Budget is related with October.
There are two authorities. They are House Committee and Senate Committee. They will cast vote on such budget resolutions.
Next step is known as budget appropriation. In this process appropriation of budgeted amount is made. Appropriation body is entrusted with this job.
Budget will be put to full phase discussion to committee. Authorization bill is passed accordingly. It will give legal authority to use the allocated money by deferent states and authorities. It may be passed for several years at a time. On its expiry, it can be renewed.
After the entire process is over, President will put final signature. Then it will be law.
Current budget is related with the current year. It has already been finalized. All allocations are over. Government has already finalized its fiscal policy. It should be executed in the proper way. Some changes can be incorporated from time to time in it, if required for the changed condition of the economy.
Future Federal budget is a part of the long term budget strategies. Aim is to bring economy to the desired potential growth. Thus you can prepare and finalized in future, after incorporating necessary changes in the economic requirements. So it is much more dynamic concept than current budget.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.