Exam 17: Macroeconomic policy II: fiscal policy

Exhibit 17-3 -According to Exhibit 17-3,if we assume the MPC is 0.8,then a shift in the AD curve from AD₀ to AD₁ would require an increase in government spending of:

(Multiple Choice)

5.0/5

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Question 41

A decrease in real GDP would affect the Australian economy by:

(Multiple Choice)

4.9/5

(57)

Question 42

The objectives of the GST in Australia were to:

(Multiple Choice)

4.8/5

(85)

Question 43

What is the spending multiplier if the MPC is equal 0.75?

(Multiple Choice)

4.7/5

(80)

Question 44

Assume the marginal propensity to consume (MPC)is 0.8 and the government cuts taxes by $250 billion.The aggregate demand curve will shift to the:

(Multiple Choice)

4.8/5

(86)

Question 45

Which of the following is true?

(Multiple Choice)

4.9/5

(80)

Question 46

'Crowding out' refers to the government's increased demand for credit,which:

(Multiple Choice)

4.9/5

(80)

Question 47

Economists sometimes look at the cyclically adjusted budget balance in order to determine:

(Multiple Choice)

4.9/5

(72)

Question 48

According to supply-side economists,lowering corporate income taxes:

(Multiple Choice)

4.7/5

(90)

Question 49

Which of the following is not true?

(Multiple Choice)

4.8/5

(91)

Question 50

Automatic stabilisers tend to stabilise the level of real GDP because:

(Multiple Choice)

4.7/5

(85)

Question 51

Exhibit 17-1 Aggregate demand and supply model -Suppose the economy in Exhibit 17-1 is in equilibrium at point E₁ and the marginal propensity to consume (MPC)is 0.8.Following Keynesian economics,to restore full employment,the government should increase its spending by:

(Multiple Choice)

4.9/5

(84)

Question 52

A $10 million increase in government spending has a different economic impact to a $10 million tax cut.

(True/False)

4.8/5

(75)

Question 53

Having a countercyclical discretionary fiscal policy would involve:

(Multiple Choice)

4.7/5

(89)

Question 54

If the MPC is 0.6 and if the goal is to increase real GDP by $200 million,then by how much would government spending have to change to generate this increase in real GDP?

(Multiple Choice)

4.8/5

(75)

Question 55

Assume Parliament enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending.The result of this balanced-budget approach is a:

(Multiple Choice)

4.7/5

(86)

Question 56

Supply-side economic policies are designed to shift the aggregate supply curve to the right,whereas Keynesian economic policies focus on shifting the aggregate demand curve to the right during recessions and to the left during economic expansions.

(True/False)

4.8/5

(73)

Question 57

Transfer payments are an example of a/an:

(Multiple Choice)

4.9/5

(87)

Question 58

According to supply-side economists,substantial tax cuts will result in:

(Multiple Choice)

4.9/5

(81)

Question 59

The RBA purchase of securities issued by the government is known as:

(Multiple Choice)

4.8/5

(82)

Question 60

Showing 41 - 60 of 123

Exhibit 17-3 -According to Exhibit 17-3,if we assume the MPC is 0.8,then a shift in the AD curve from AD₀ to AD₁ would require an increase in government spending of:

A decrease in real GDP would affect the Australian economy by:

The objectives of the GST in Australia were to:

What is the spending multiplier if the MPC is equal 0.75?

Assume the marginal propensity to consume (MPC)is 0.8 and the government cuts taxes by $250 billion.The aggregate demand curve will shift to the:

Which of the following is true?

'Crowding out' refers to the government's increased demand for credit,which:

Economists sometimes look at the cyclically adjusted budget balance in order to determine:

According to supply-side economists,lowering corporate income taxes:

Which of the following is not true?

Automatic stabilisers tend to stabilise the level of real GDP because:

Exhibit 17-1 Aggregate demand and supply model -Suppose the economy in Exhibit 17-1 is in equilibrium at point E₁ and the marginal propensity to consume (MPC)is 0.8.Following Keynesian economics,to restore full employment,the government should increase its spending by:

A $10 million increase in government spending has a different economic impact to a $10 million tax cut.

Having a countercyclical discretionary fiscal policy would involve:

If the MPC is 0.6 and if the goal is to increase real GDP by $200 million,then by how much would government spending have to change to generate this increase in real GDP?

Assume Parliament enacts a $500 billion increase in spending and a $500 billion tax increase to finance the additional government spending.The result of this balanced-budget approach is a:

Supply-side economic policies are designed to shift the aggregate supply curve to the right,whereas Keynesian economic policies focus on shifting the aggregate demand curve to the right during recessions and to the left during economic expansions.

Transfer payments are an example of a/an:

According to supply-side economists,substantial tax cuts will result in:

The RBA purchase of securities issued by the government is known as:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

International trade and finance

Applying graphs to economics

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