Exam 18: The Economy, Government, and Economic Challenges Facing the United States

Contractionary monetary policy makes credit harder to get, raises interest rates, and has a downward effect on the level of income.

From 1929 to 1932, U.S. industrial production and national income:

Large-scale regulations have brought about a reaction on the part of some people supporting the doctrine of:

What is an example of how the government directs the flow of profits toward corporations and away from consumers?

According to the U.S. Department of Commerce (2018), which receives the highest percent of federal outlay?

The fiscal policy rule of thumb allows that some government budget deficits can be useful in stimulating the economy out of a:

A depression is a period of drastic decline in an economy.

The majority of federal revenue comes from Social Security taxes.

If a firm is too big to fail, economists argue it is too big to be regulated.

In the next 15 years, the Social Security system will be supporting many more retirees than it does now, while at the same time having many fewer contributors per retiree.

The policy of using the government budget surplus or deficit to control the level of spending in the economy is called:

The effects of a firm's actions or decisions that negatively affect others but that the firm does not consider when undertaking the action are called:

Economics alone provides a relatively easy answer to economic issues in the United States, and there is little to be done politically.

Macroeconomic policies of government concern:

Because of government's large indirect role, we call our economic system a pragmatic market economy rather than a (n):

What is fiscal policy? What is monetary policy? Why are these two policies called primary macroeconomic policies? How does monetary policy differ from fiscal policy?

The role of government in the economy is:

Debt contracts the economy and does not serve a useful purpose.

In the 1970s, the government instituted many security programs and took a greater role in maintaining the level of employment and in stabilizing the economy.

Annually, the U.S. federal, state, and local governments together collect ____ in taxes.