Problems with understanding macroeconomics. Could you please assist with the following?
Question 1. Please define fiscal policy and identify the ways in which government can influence the economy.
Question 2: Please tell me the differences between fixed and variable taxes and provide examples of each.
Question 3: Suppose that the government decreases spending by $100 billion. What happens to aggregate demand? What is the likely effect on prices and output? Where are the new equilibrium price level and GDP relative to the old levels? Could you give me a graph???? If not that's okay. The graph helps me visualize the problem.
Question 4: Suppose the government decreases taxes by 20 percent. Describe the effects to the equilibrium price level and GDP. Please address consumption, disposable income, and aggregate demand in your answer.
Question 5: Suppose the government decreases spending by $20 billion. How much will this change equilibrium GDP if the MPC is 80 percent and the tax rate is 1/6 (16.6 percent)? Could you do a graph for this as well?