Purchase Solution

The Fiscal Cliff

Not what you're looking for?

Ask Custom Question

Describe the so-called fiscal cliff and the expected impact for the State of Mississippi and the Mississippi Delta and for the firms herein using the key words you may have learned. Key words may include buy not limited to demand/supply, elasticity, subsidies, consumer spending, business spending, confidence, uncertainty, budget deficits, national debt, loss of credibility, double-dip, etc.

Purchase this Solution
Solution Summary

This solution explains The Fiscal Cliff. The sources used are also included in the solution.

Solution Preview

Step 1
The fiscal cliff is a term that describes the precipitous situation that the US government will face at the end of 2012. At the end of 2012 the conditions of the Budget Control Act of 2011 come into force. At the end of 2012, there will be an increase in minimum tax, commencement of taxes that support Obama's health care law, end of specific tax breaks for businesses, end of temporary payroll tax cuts, and the end of tax cuts that have been in place since 2001-2003. The sudden implementation of these laws at the end of 2012 increases the risk of recession but are designed to increase the prospects of long term economic growth. There is a possibility that with the fiscal cliff there may be a double-dip recession. This means that the gross domestic product growth may slide back to negative after a period of positive growth. This will create uncertainty in the economy. The risk is that a recession followed by a short-lived recovery followed by another recession may occur because of ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Terminology: Fiscal Cliff and Obama Care

    (1) Fiscal cliff. The first term discussed as the topic of constant conversation in the mass media is the term fiscal cliff.

  • Integrative Bargaining Within American Congress

    The fiscal cliff fiasco is one such example of this.

  • Current US FInancial Standpoint

    What do you think of the government's plans as they stand right now? Are Congress and the President doing the right thing? Can the country afford the cost? How far should efforts go? Did we survive the fiscal cliff?

  • Cliff Swatner's Investment

    Cliff has three years time to his marriage and it is expected that Cliff will be able to draw the $20,000 before his marriage.

  • Relative Dating Techniques

    A geologist sees a cliff where rock C forms the lower half of a cliff, and is immediately overlain by a sandstone (rock B) comprising well rounded grains with finely pitted surfaces. the sandstone reaches to the top of the cliff.

  • Stone launched vertically upward from top of cliff

    The solution discusses how high the stone above the base of the cliff is.

  • Projectile motion of shell shot from a cannon

    What must the minimum muzzle velocity be for the shell to clear the top of the cliff? 2) The ground at the top of the cliff is level, with a constant elevation of 25.0m above the cannon.

  • Cliff's current investment approach.

    Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn't very good. Cliff currently has about $90,000 invested.

  • Cliff of the height calculation

    108583 Cliff of the height calculation A diver running 2.1 m/s dives out horizontally from the edge of a vertical cliff and reaches the water below 3.0s later. How high was the cliff and how far from its base did the diver hit the water?

View More Related Solutions