Question 1

The fastest growing category of government expenditure is

Accepted Answer

A) grants to state and local governments. 
B) defense spending. 
C) transfer payments. 
D) government purchases. 
A) grants to state and local governments. 
B) defense spending. 
C) transfer payments. 
D) government purchases.

Question 2

The tax wedge is the difference between the

Accepted Answer

A) amount of taxes needed to balance the federal budget and the actual amount of taxes. 
B) amount of taxes needed to pay off the national debt and the actual amount of taxes. 
C) pretax and posttax returns to an economic activity. 
D) nominal and real interest rates. 
A) amount of taxes needed to balance the federal budget and the actual amount of taxes. 
B) amount of taxes needed to pay off the national debt and the actual amount of taxes. 
C) pretax and posttax returns to an economic activity. 
D) nominal and real interest rates.

Question 3

Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

Accepted Answer

A) higher;higher 
B) higher;lower 
C) lower;higher 
D) lower;lower 
A) higher;higher 
B) higher;lower 
C) lower;higher 
D) lower;lower

Question 4

An increase in government spending will force an appreciation of the dollar,which causes net exports to fall.

Accepted Answer

A) True 
 B)False

Question 5

In absolute value,the tax multiplier is greater than the government purchases multiplier.

Accepted Answer

A) True 
 B)False

Question 6

The aggregate demand curve will shift to the right ________ the initial increase in government purchases.

Accepted Answer

A) by less than 
B) by more than 
C) by the same amount as 
D) sometimes by more than and other times by less than 
A) by less than 
B) by more than 
C) by the same amount as 
D) sometimes by more than and other times by less than

The fastest growing category of government expenditure is

The tax wedge is the difference between the

Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be and real GDP to be .

An increase in government spending will force an appreciation of the dollar,which causes net exports to fall.

In absolute value,the tax multiplier is greater than the government purchases multiplier.

The aggregate demand curve will shift to the right ________ the initial increase in government purchases.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 16: Fiscal Policy

The fastest growing category of government expenditure is

The tax wedge is the difference between the

Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

An increase in government spending will force an appreciation of the dollar,which causes net exports to fall.

In absolute value,the tax multiplier is greater than the government purchases multiplier.

The aggregate demand curve will shift to the right ________ the initial increase in government purchases.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be and real GDP to be .