What is the role of the Council of Economic Advisers (CEA) as it relates to fiscal policy? Use an Internet search to find the names and university affiliations of the present members of the CEA.

Short Answer

Expert verified

CEA assists the federal government to formulate discretionary fiscal policy.

The CEA members and their university affiliations are as follows:

NAMEUNIVERSITY
Cecilia Elena Rouse (Chair)
Harvard University
Jared Bernstein (Member)
Manhattan School of Music, Howard University, and Columbia University
Heather Boushey (Member)
Hampshire College, New School for Social Research

Step by step solution

01

Meaning and role of Council of Economic Advisers (CEA)

The Council of Economic Advisers (CEA) is a committee formulated by the U.S. president. It consists of three members: a chair and two other members.It is designed for providing economic advice to the federal government.

The CEA assists the president in analyzing the economic growth and trends. It helps the government to formulate new policies to enforce a robust economic policy. Also, it reviews and regulates the government programs and policies to meet the desired goal for economic growth.

02

Names and university affiliations of the Members of CEA

Cecilia Elena Rouse – Chair

She received her higher education from Harvard University. After completing her doctorate from Harvard, she joined Princeton University.

Jared Bernstein – Member

After graduating from Manhattan School of Music, he earned his master’s degree from Howard University and doctorate from Columbia University. He has also taught at Howard University, Columbia University, and New York University.

Heather Boushey – Member

She completed her graduation from Hampshire College and PhD from New School for Social Research.

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Most popular questions from this chapter

Some politicians have suggested that the United States enact a constitutional amendment requiring that the federal government balance its budget annually. Explain why such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experiences a severe recession.

Refer to the following table for Waxwania:

What is the marginal tax rate in Waxwania? The average tax rate? Which of the following describes the tax system: proportional, progressive, or regressive?

During the recession of 2007–2009, the U.S. federal government’s tax collections fell from about \(2.6 trillion down to about \)2.1 trillion while GDP declined by about 4 percent. Does the U.S. tax system appear to have built-in stabilizers?

  1. Yes

  2. No

Briefly state and evaluate the problem of time lags in enacting and applying fiscal policy. Explain the idea of a political business cycle. How might expectations of a near-term policy reversal weaken fiscal policy based on changes in tax rates? What is the crowding-out effect, and why might it be relevant to fiscal policy?

Refer back to the table in Figure 12.7 in the previous chapter. Suppose that aggregate demand increases such that the amount of real output demanded rises by \(7 billion at each price level. By what percentage will the price level increase? Will this inflation be demand-pull inflation, or will it be cost-push inflation? If potential real GDP (that is, full-employment GDP) is \)510 billion, what will be the size of the positive GDP gap after the change in aggregate demand? If government wants to use fiscal policy to counter the resulting inflation without changing tax rates, would it increase government spending or decrease it?

Real Output Demanded (Billions)
Price Level (Index Number)

Real Output Supplied (Billions)
\(506
108\)513
508104512
510100510
51296507
51492502
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