Jonathan

Explain the difference between a discretionary fiscal policy and an automatic stabilizer fiscal policy. Give an example of each one that government could do.  

a) (x,y) = (2.63, -8.47)

b) (x,y) = (6.32, 8.47)

c) (x,y) = (3.35, -11.72)

d) (x,y) = (2.63, -10.01)

e) none of the above

2) The rate of change of g(x) at the inflection point from problem #9 is:

 a) 0.82

 b) 2.63

 c) -10.01

 d) -8.47

 e) none of the above

The maximum point of f(x) = 0.3x3 + 1.2x2 – 6x + 4, with -8≤x≤4, is at:

a) (x,y) = (-8.000, -24.800)

b) (x,y) = (-4.239, 28.146)

c) (x,y) = (1.573, -1.301)

d) (x,y) = (4.000, 18.400)

e) none of the above

Many state governments argue that making federal funds dependent on state cooperation with national goals is "federal blackmail." Discuss an example of this federal government practice and the reasons why the federal government resorts to using financial incentives (and disincentives) instead of simply passing laws requiring states to do what the federal government wants.