Exam 10: Fiscal Policy

Identify whether each of the following taxes is progressive or regressive: a.the Canadian federal income tax b.a provincial sales tax c.a tax on cigarettes d.the goods and services tax e.a tax on gasoline

In 2009,how much was Canadian federal government debt as a percentage of GDP?

What impact does a larger crowding-out effect have on the magnitude of a given fiscal policy's effect on AD and investment?

During a recession,what automatically happens to government transfer payments and tax revenue?

Which of the following statements about the relationship between the federal budget and net exports is the most accurate?

What will be the impact on AD and the budget surplus if there is initially a federal budget surplus and taxes rise,while transfer payments fall?

If the marginal propensity to consume is 4/5,what is the multiplier?

If the government cuts taxes,total spending will fall and AD will shift to the left.

If the MPC is 0.8,what decrease in government purchases would be called for to achieve a $50 billion decrease in AD?

Which of the following statements about time lags and fiscal policy is the most accurate?

What impact does a smaller crowding-out effect have on the magnitude of a given fiscal policy's effect on unemployment and net exports?

Which of the following describes how the amount of taxes collected by the government is impacted by the state of the economy?

Figure 10-2 -Refer to Figure 10-2.If the economy is currently at a full-employment equilibrium and there is an increase in tax revenue,what will the short-run equilibrium be?

Fiscal policy is a plan for taxing and spending that is designed to steer the economy in some desired direction.

What has the government traditionally used to influence the demand side of the economy?

What effect would an increase in government purchases,combined with an increase in taxes,have on AD?

Which of the following circumstances will shift AD to the right,other things being equal?

Other things being equal,what effect will an expansionary fiscal policy tend to have?

Figure 10-2 -Refer to Figure 10-2.If the economy is currently at full-employment equilibrium and there is a decrease in the value of the Canadian dollar,what will the short run equilibrium be?

What impact does a larger crowding-out effect have on the magnitude of a given fiscal policy's effect on interest rates and investment?