Exam 13: Fiscal Policy

Automatic stabilizers have the effect of

The crowding out effect refers to

Which one of the following statements is NOT true?

Fiscal policy time lags tend to be

The concept that a decline in tax rates and other incentives will induce individuals and firms to increase productivity is typically referred to as

Which of the following represents expansionary fiscal policy?

When it takes time for the president and Congress to change fiscal policy to act on economic data, we have a(n)

In the short run, expansionary fiscal policy usually will

The time required to acquire information about the state of the economy is known as

If the government increases aggregate demand when the economy is at both short-run and long-run equilibrium, the full long-run effect of this fiscal policy will be to

Which of the following actions could be undertaken if the government wants to reduce a recessionary gap?

In the traditional Keynesian model, if the government increases government spending,

When supply-side policy is successful in raising equilibrium real Gross Domestic Product (GDP), the reason is that the policy generates

In January 2009, the President submitted a bill to Congress that was designed to stimulate the economy and increase employment. The legislation was passed in March 2009, and the spending occurred from June 2009 to September 2010. Consequently

According to the traditional Keynesian analysis, if the government increases spending and pays for all of it by raising current taxes, then

Whenever government spending is a substitute for private spending

The supporters of a proposal to increase marginal taxes on those earning over $250,000 a year say this change would generate $100 million in new tax revenues. A supply-side economist would argue that the actual revenue raised will be

All of the following are automatic fiscal stabilizers EXCEPT

To the extent that the political process of moving legislation through Congress is slow

The recognition time lag recognizes that it takes time