Exam 18: Fiscal Policy and National Output

In recent years,many economists believe that changes in taxes rather than changes in government expenditures should be the primary fiscal weapon to fight unemployment or inflation because

Excluded from the list of those having primary responsibility for making fiscal policy is the

The following question are based on the following diagram: -Which of the following events would correct the condition shown?

The government can use fiscal policy to reduce inflation by

One reason NOT to wait for wage rates and other input prices to fall and shift the short-run aggregate supply curve to the right in an economy experiencing a recessionary gap is that

The following question are based on the following diagram: -Which of the following events would correct the condition shown?

The government may attempt to reduce unemployment by

Refer to the following graphs for the following question. -Which of the diagrams best reflects the existence of a recessionary gap?

Discretionary fiscal policy is

The difference between the value of exports and the value of imports is called

If the economy is operating on the positively sloped range of the short-run aggregate supply curve,fiscal policy that increases total spending

In an open economy,if government expenditures,tax receipts,and exports are the same at all levels of GDP,the multiplier effect of a $1 increase in intended spending on net exports raises the equilibrium GDP by ________,where MPI = marginal propensity to import.

The higher the tax rate,government spending unchanged,the

Automatic stabilizers

Lower personal tax rates reduce

The existence of an inflationary gap implies that

When inflation constitutes a major economic problem,government policy may attempt to

The following question are based on the following diagram: -From the diagram,one can infer that

The Council of Economic Advisers

The greatest source of revenue for most state governments is the ________ tax.