Exam 10: Fiscal Policy

Figure 10.1 -Refer to Figure 10.1 to answer this question. Suppose that the economy were at point A, and the government decreases government spending. In the short run , the economy will move to point:

Stabilization policies are policies designed:

Long- term budget deficits are bad for the economy for all the following reasons except:

The fiscal expansion during the Kennedy administration was successful because the economy was already operating above full employment.

In 2009, federal spending was about:

Fiscal policy refers to:

One reason why the US government experienced a surplus during Clinton's era was that the U.S. economy was growing.

Which of the following is an example of an expansionary fiscal policy?

The federal budget acts as an automatic economic stabilizer because the President has the power to authorize additional discretionary spending.

The corporate tax rate during the Kennedy Administration was lower than the corporate tax rate today.

In fiscal policy, the outside lag usually takes longer than the inside lag.

Recall Application 1, "Increasing Life Expectancy and Aging Populations Spur Costs of Entitlement Programs," to answer the following questions: -According to the application, estimates of the size of spending for Social Security, Medicare and Medicaid is approximately _______ percent of GDP by 2075.

According to the textbook, the Great Depression was prolonged due to the lack of net fiscal expansion.

Federal spending consists of:

The tax cuts of the first Reagan administration were intended to stimulate aggregate supply, rather than to stimulate aggregate demand.

Social insurance taxes are:

The smallest source of federal revenue is:

As a large proportion of the population retire in the next few years, what would happen to the federal revenue?

Entitlement and mandatory spending consist of:

The budget deficit was about _______ percent of GDP in 2009.