Exam 10: Fiscal Policy

Recall Application 3, "Evaluating the Obama Fiscal Stimulus" to answer the following questions: -According to the application, which of the following was part of the methodology used by the Council of Economic Advisers when estimating the effects of the stimulus package?

Which of the following did not directly contribute to the U.S. budget deficit in 2009?

According to economic data, the last time the U.S. economy experienced a budget surplus was in:

In 2009, federal spending was about _______ percent of GDP.

The discretionary spending component of federal spending includes all programs that:

An expansionary fiscal policy shifts the aggregate demand curve to the left.

Federal revenue consists of taxes levied on:

Recall Application 1, "Increasing Life Expectancy and Aging Populations Spur Costs of Entitlement Programs," to answer the following questions: -According to the application, one implication of increasing the taxes to pay for the higher costs of entitlement programs is:

Recall Application 2, "The Confucius Curve?" to answer the following questions: -According to the application, the central idea for the Laffer curve is:

Recall Application 1, "Increasing Life Expectancy and Aging Populations Spur Costs of Entitlement Programs," to answer the following questions: -According to the application, some economists suggest that in order to reduce the burden of entitlement programs on future generations, the government should:

Corporate taxes are:

The basic idea of the fiscal multiplier is that an initial increase in government spending will have a:

Assume that the short- run AS is upward sloping. If the government chooses to increase government expenditure or to decrease taxes, according to the Aggregate Supply - Aggregate Demand model:

As the population of the United States becomes older, which component of the Federal Spending would increase the most?

The Kennedy administration was not concerned about the possible negative effect of large tax cuts because:

The federal government runs a budget deficit when:

Successful stabilization policies are very difficult to implement because all of the following reasons, except:

Fiscal policy shifts the:

During the 1930s, politicians did not use fiscal policy to counter the Great Depression because:

What are the two possible sources of inside lags for fiscal policy?