Exam 11: Managing Aggregate Demand Fiscal Policy

Historically,the government has used fiscal policy to affect the economy through

The central idea of supply-side tax cuts is that certain types of tax cuts will increase

Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?

Appropriate fiscal policy in the U.S.in 2009 would attempt to

An automatic stabilizer is a feature of the economy that

If a state government reduces property taxes for residents at the same time that it increases the state income tax,what will happen to the expenditures schedule of the residents of this state?

A Keynesian economist would expect a supply-side tax cut to shift

Changes in government spending

For liberals,the United States has a(n)

Supply-side tax cuts are more likely to have the intended beneficial effect on

Reductions in the personal income tax,often advocated by supply-siders to increase labor supply and effort,can be expected to also

When the economy has an income tax that is variable,the multiplier is

Which of the following statements would appeal to someone who favors an expanded public sector as the basis of expansionary fiscal policy?

When government spending is added to the basic macroeconomic model,the multiplier for G would

Which of the following factors has the most quantitative importance on the oversimplified multiplier formula?

For any given change in taxes,the multiplier

What is the difference between tax cuts imposed on higher-income households compared with lower- and middle-income households? Discuss the implications for the multiplier and the effectiveness of the tax cuts for boosting GDP.

If a "liberal" wanted to decrease aggregate demand,which of the following would she tend to favor?

A fiscal policy that reduces taxes or increases government spending will cause a(n)

When we add a personal income tax to the macroeconomic model,the