Question 1

In the United States for the year 2010, the federal government had a ________ so the national debt was ________.

Accepted Answer

A)  budget deficit; increasing 
B)  balanced budget; not changing 
C)  budget surplus; decreasing 
D)  budget deficit; decreasing 
E)  budget surplus; increasing 
A)  budget deficit; increasing 
B)  balanced budget; not changing 
C)  budget surplus; decreasing 
D)  budget deficit; decreasing 
E)  budget surplus; increasing

Question 2

When the economy is in a recession, ________ taxes decrease while ________ spending increases and, as a result of this automatic fiscal policy, aggregate demand ________.

Accepted Answer

A)  needs-tested; induced; decreases 
B)  induced; needs-tested; increases 
C)  induced; discretionary; is not changed 
D)  discretionary; needs-tested; increases 
E)  discretionary; induced; is not changed 
A)  needs-tested; induced; decreases 
B)  induced; needs-tested; increases 
C)  induced; discretionary; is not changed 
D)  discretionary; needs-tested; increases 
E)  discretionary; induced; is not changed

Question 3

-An economy is at a short-run equilibrium as illustrated in the above figure.An appropriate fiscal policy option to move the economy to full employment is to increase

Accepted Answer

A)  government expenditure and move the economy to a full-employment equilibrium at point c. 
B)  tax rates and move the economy to a full-employment equilibrium at point c. 
C)  government expenditure and move the economy to a full-employment equilibrium at point b. 
D)  tax rates and move the economy to a full-employment equilibrium at point b. 
E)  lower the interest rate by increasing the quantity of money and move the economy to a full-employment equilibrium at point b. 
A)  government expenditure and move the economy to a full-employment equilibrium at point c. 
B)  tax rates and move the economy to a full-employment equilibrium at point c. 
C)  government expenditure and move the economy to a full-employment equilibrium at point b. 
D)  tax rates and move the economy to a full-employment equilibrium at point b. 
E)  lower the interest rate by increasing the quantity of money and move the economy to a full-employment equilibrium at point b.

In the United States for the year 2010, the federal government had a so the national debt was .

When the economy is in a recession, taxes decrease while spending increases and, as a result of this automatic fiscal policy, aggregate demand .

-An economy is at a short-run equilibrium as illustrated in the above figure.An appropriate fiscal policy option to move the economy to full employment is to increase

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 16: Fiscal Policy

In the United States for the year 2010, the federal government had a ________ so the national debt was ________.

When the economy is in a recession, ________ taxes decrease while ________ spending increases and, as a result of this automatic fiscal policy, aggregate demand ________.

-An economy is at a short-run equilibrium as illustrated in the above figure.An appropriate fiscal policy option to move the economy to full employment is to increase

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Monetary Policy

International Trade Policy

International Finance

Filters

In the United States for the year 2010, the federal government had a so the national debt was .

When the economy is in a recession, taxes decrease while spending increases and, as a result of this automatic fiscal policy, aggregate demand .