Exam 10: Fiscal Policy

In fiscal policy, the outside lags:

Which of the following did not cause the budget deficit to grow larger since 2001?

The permanent income view of consumption spending postulate when households receive a tax cut that is deemed temporary, then their consumption spending

Rank (from 1 to 3) the following categories of federal spending from larger (1) to smaller (3): ( ) Discretionary defense spending ( ) Medicare and Medicaid spending ( ) Net interest spending

The tax cuts enacted during the first term of President Reagan were designed primarily to:

A government policy action that moves the economy closer to full employment or potential output is called:

In fiscal policy, the inside lags:

List and describe the three channels through which budget deficits work as automatic economic stabilizers.

All of the following are examples of outside lags associated with fiscal policy, except:

Some outside lags in fiscal policy are due to the difficulty in recognizing the true state of the economy.

Using data from 2009, rank the federal government revenue sources from largest to smallest:

Maintaining a balanced budget during an economic recession would be the difficult to implement because:

The tax cut implemented after the Kennedy Administration stimulated economic growth.

The response of the federal government to the devastation brought about by Hurricane Katrina resulted n a larger budget deficit.

If Congress were required to consent to every deviation of the actual budget from the initially approved budget, the federal budget would not work as an automatic economic stabilizer due to:

Which of the following is considered as the largest fiscal policy in U.S. history?

"The budget deficits incurred by the government during the first term of George W. Bush were purely due to the tax cuts implemented by President Bush and by the wars in Iraq and Afghanistan." Do you agree or disagree?

Contractionary fiscal policy shifts the:

The length of time from when households receive tax rebate checks to the time they spend the checks is part of the:

The federal budget runs a deficit if tax revenues exceed government spending.