Exam 7: Economic and Budgetary Policy

Provide an example of a regressive tax.

Inflation is measured by the ______.

The government shutdown of October 2013 was due to ______.

When does a positive balance of trade occur?

Explain the difference between fiscal policy and monetary policy. How does each tool work? Who is responsible for them?

Why don't people recognize economic policy as being critical to government functions?

The distributive effects of a tax are ______.

Which of the following is an example of a regressive tax?

Describe the positions that opposing sides take with regard to the U.S. balance of trade. Why do some argue that a negative balance of trade is undesirable, while others argue that a negative balance of trade is not a problem?

An entitlement program refers to ______.

The American Recovery and Reinvestment Act (2009) attempted to stimulate economic growth primarily using which economic policy tool?

During times of inflation, which of the following is done by the Fed?

What does economic growth mean?

What are the benefits of full employment?

Today, entitlement programs consume roughly ______% of the federal budget.

Discuss the two major ways that the federal government can reduce the deficit. In your discussion, explain the advantages and obstacles to each major approach.

Discuss how the Federal Reserve (Fed) can use monetary policy to affect the economy. What is the impact of this action?

A CPI between ______% and ______% is one that most government policy makers can accept as tolerable.

The national debt, which is the accumulation of all of the deficits the nation has run, was nearly ______ in December 2018.

Provide an example of a progressive tax.