Question 1

A fiscal action that is initiated by an act of Congress is called

Accepted Answer

A)  the government expenditure multiplier. 
B)  discretionary fiscal policy. 
C)  automatic fiscal policy. 
D)  generational fiscal policy. 
A)  the government expenditure multiplier. 
B)  discretionary fiscal policy. 
C)  automatic fiscal policy. 
D)  generational fiscal policy.

Question 2

The sum of past budget deficits minus the sum of past budget surpluses refers to

Accepted Answer

A)  the national debt. 
B)  the cyclically unbalanced budget. 
C)  the structural national debt. 
D)  the federal government net worth. 
A)  the national debt. 
B)  the cyclically unbalanced budget. 
C)  the structural national debt. 
D)  the federal government net worth.

Question 3

All developed countries have about the same ratio of government deficit to GDP.

Accepted Answer

A) True 
 B)False

Question 4

What does the Employment Act of 1946 specify? Why is it an important economic milestone?

Accepted Answer

The Employment Act of 1946 said that the

Question 5

The structural surplus measures whether a budget surplus is cyclical or structural.

Accepted Answer

A) True 
 B)False

Question 6

Unemployment insurance are payments made to unemployed workers. Typically workers are paid for no more than 26 weeks. In December 2012, the federal government passed legislation that would extend the payments to a maximum of 73 weeks. This extension is an example of

Accepted Answer

A)  automatic fiscal policy. 
B)  discretionary fiscal policy. 
C)  non-needs spending. 
D)  contractionary fiscal policy. 
A)  automatic fiscal policy. 
B)  discretionary fiscal policy. 
C)  non-needs spending. 
D)  contractionary fiscal policy.

Question 7

If the budget deficit is $50 billion and the structural deficit is $10 billion, the cyclical deficit is

Accepted Answer

A)  $10 billion. 
B)  $40 billion. 
C)  $60 billion. 
D)  $50 billion 
A)  $10 billion. 
B)  $40 billion. 
C)  $60 billion. 
D)  $50 billion

Question 8

When an economy is above full employment and the government has a budget deficit, that deficit

Accepted Answer

A)  exceeds the structural deficit. 
B)  is equal to the structural deficit minus the cyclical deficit. 
C)  is equal to the cyclical deficit minus the structural deficit. 
D)  is less than the structural deficit. 
A)  exceeds the structural deficit. 
B)  is equal to the structural deficit minus the cyclical deficit. 
C)  is equal to the cyclical deficit minus the structural deficit. 
D)  is less than the structural deficit.

Question 9

In 2007, Norway's government had revenue of $226.3 billion and expenditures of $158.7 billion. At the same time, GDP totaled $392 billion and government debt was about 67 percent of GDP. In 2007, Norway's government ran a government budget ________ and government debt ________.

Accepted Answer

A)  surplus; decreased 
B)  deficit; decreased 
C)  surplus; increased 
D)  deficit; increased 
A)  surplus; decreased 
B)  deficit; decreased 
C)  surplus; increased 
D)  deficit; increased

Question 10

How has the federal government debt as a percentage of GDP changed since the end of World War II?

Accepted Answer

As a percentage of GDP, the federal gove

Question 11

An income tax ________ potential GDP by shifting the ________ curve ________.

Accepted Answer

A)  increases; labor demand; rightward 
B)  decreases; labor demand; leftward 
C)  increases; labor supply; rightward 
D)  decreases; labor supply; leftward 
A)  increases; labor demand; rightward 
B)  decreases; labor demand; leftward 
C)  increases; labor supply; rightward 
D)  decreases; labor supply; leftward

Question 12

The Council of Economic Advisors advises the

Accepted Answer

A)  President. 
B)  Congress. 
C)  Senate. 
D)  House of Representatives. 
A)  President. 
B)  Congress. 
C)  Senate. 
D)  House of Representatives.

Question 13

Generational accounting shows that the present value of the government's commitments to pay benefits are ________ the present value of its taxes.

Accepted Answer

A)  greater than 
B)  less than 
C)  equal to 
D)  not comparable to 
A)  greater than 
B)  less than 
C)  equal to 
D)  not comparable to

Question 14

-In the above figure

Accepted Answer

A)  the structural deficit equals zero. 
B)  any surpluses are cyclical surpluses. 
C)  any deficits are cyclical deficits. 
D)  All of the above answers are correct. 
A)  the structural deficit equals zero. 
B)  any surpluses are cyclical surpluses. 
C)  any deficits are cyclical deficits. 
D)  All of the above answers are correct.

Question 15

-Economic data for a mythical economy in the years 2012-2016 are summarized in the figure above. Assume that the spending formulas and tax schedules are identical for all years. When the economy is at full employment, the government has a

Accepted Answer

A)  budget surplus. 
B)  balanced budget. 
C)  budget deficit. 
D)  procyclical policy. 
A)  budget surplus. 
B)  balanced budget. 
C)  budget deficit. 
D)  procyclical policy.

Question 16

If tax revenues equal $1.5 billion and government outlays equal $1.6 billion, then the

Accepted Answer

A)  government budget has a deficit of $0.1 billion. 
B)  government budget has a surplus of $0.1 billion. 
C)  government debt is equal to $0.1 billion. 
D)  government debt declines by $0.1 billion. 
A)  government budget has a deficit of $0.1 billion. 
B)  government budget has a surplus of $0.1 billion. 
C)  government debt is equal to $0.1 billion. 
D)  government debt declines by $0.1 billion.

Question 17

If we compare the United States to France, the U.S. tax wedge is ________ the French tax wedge.

Accepted Answer

A)  larger than 
B)  equals to 
C)  smaller than 
D)  not comparable to 
A)  larger than 
B)  equals to 
C)  smaller than 
D)  not comparable to

Question 18

What is the difference between budget surplus, budget deficit and a balanced budget? Which of these three budget outcomes is currently the case in the United States?

Accepted Answer

A budget surplus occurs if tax revenues

Question 19

The magnitude of the tax multiplier ________ the magnitude of the government expenditure multiplier.

Accepted Answer

A)  is smaller than 
B)  is larger than 
C)  is equal to 
D)  is not comparable to 
A)  is smaller than 
B)  is larger than 
C)  is equal to 
D)  is not comparable to

Question 20

The U.S. government's budget

Accepted Answer

A)  must be balanced each year. 
B)  has mostly been in surplus during the past 30 years. 
C)  has mostly been in deficit during the past 30 years. 
D)  has always been in deficit during the past 30 years. 
A)  must be balanced each year. 
B)  has mostly been in surplus during the past 30 years. 
C)  has mostly been in deficit during the past 30 years. 
D)  has always been in deficit during the past 30 years.

A fiscal action that is initiated by an act of Congress is called

The sum of past budget deficits minus the sum of past budget surpluses refers to

All developed countries have about the same ratio of government deficit to GDP.

What does the Employment Act of 1946 specify? Why is it an important economic milestone?

The structural surplus measures whether a budget surplus is cyclical or structural.

Unemployment insurance are payments made to unemployed workers. Typically workers are paid for no more than 26 weeks. In December 2012, the federal government passed legislation that would extend the payments to a maximum of 73 weeks. This extension is an example of

If the budget deficit is $50 billion and the structural deficit is $10 billion, the cyclical deficit is

When an economy is above full employment and the government has a budget deficit, that deficit

In 2007, Norway's government had revenue of $226.3 billion and expenditures of $158.7 billion. At the same time, GDP totaled $392 billion and government debt was about 67 percent of GDP. In 2007, Norway's government ran a government budget and government debt .

How has the federal government debt as a percentage of GDP changed since the end of World War II?

An income tax potential GDP by shifting the curve .

The Council of Economic Advisors advises the

Generational accounting shows that the present value of the government's commitments to pay benefits are ________ the present value of its taxes.

-In the above figure

-Economic data for a mythical economy in the years 2012-2016 are summarized in the figure above. Assume that the spending formulas and tax schedules are identical for all years. When the economy is at full employment, the government has a

If tax revenues equal $1.5 billion and government outlays equal $1.6 billion, then the

If we compare the United States to France, the U.S. tax wedge is ________ the French tax wedge.

What is the difference between budget surplus, budget deficit and a balanced budget? Which of these three budget outcomes is currently the case in the United States?

The magnitude of the tax multiplier ________ the magnitude of the government expenditure multiplier.

The U.S. government's budget

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Monetary Policy

International Trade Policy

Filters

Exam 13: Fiscal Policy

A fiscal action that is initiated by an act of Congress is called

The sum of past budget deficits minus the sum of past budget surpluses refers to

All developed countries have about the same ratio of government deficit to GDP.

What does the Employment Act of 1946 specify? Why is it an important economic milestone?

The structural surplus measures whether a budget surplus is cyclical or structural.

Unemployment insurance are payments made to unemployed workers. Typically workers are paid for no more than 26 weeks. In December 2012, the federal government passed legislation that would extend the payments to a maximum of 73 weeks. This extension is an example of

If the budget deficit is $50 billion and the structural deficit is $10 billion, the cyclical deficit is

When an economy is above full employment and the government has a budget deficit, that deficit

In 2007, Norway's government had revenue of $226.3 billion and expenditures of $158.7 billion. At the same time, GDP totaled $392 billion and government debt was about 67 percent of GDP. In 2007, Norway's government ran a government budget ________ and government debt ________.

How has the federal government debt as a percentage of GDP changed since the end of World War II?

An income tax ________ potential GDP by shifting the ________ curve ________.

The Council of Economic Advisors advises the

Generational accounting shows that the present value of the government's commitments to pay benefits are ________ the present value of its taxes.

-In the above figure

-Economic data for a mythical economy in the years 2012-2016 are summarized in the figure above. Assume that the spending formulas and tax schedules are identical for all years. When the economy is at full employment, the government has a

If tax revenues equal $1.5 billion and government outlays equal $1.6 billion, then the

If we compare the United States to France, the U.S. tax wedge is ________ the French tax wedge.

What is the difference between budget surplus, budget deficit and a balanced budget? Which of these three budget outcomes is currently the case in the United States?

The magnitude of the tax multiplier ________ the magnitude of the government expenditure multiplier.

The U.S. government's budget

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Monetary Policy

International Trade Policy

Filters

In 2007, Norway's government had revenue of $226.3 billion and expenditures of $158.7 billion. At the same time, GDP totaled $392 billion and government debt was about 67 percent of GDP. In 2007, Norway's government ran a government budget and government debt .

An income tax potential GDP by shifting the curve .