Question 1

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

Accepted Answer

A)  central planning. 
B)  indicative planning. 
C)  aggregate demand. 
D)  aggregate supply. 
A)  central planning. 
B)  indicative planning. 
C)  aggregate demand. 
D)  aggregate supply.

Question 2

The government's fiscal policy is its plan for managing ______________ through its spending and taxing programs

Accepted Answer

A)  aggregate demand 
B)  aggregate supply 
C)  international trade 
D)  None of these 
A)  aggregate demand 
B)  aggregate supply 
C)  international trade 
D)  None of these

Question 3

The oversimplified formula for the multiplier yields a number that is too large due to the exclusion of

Accepted Answer

A)  variable imports. 
B)  changes in the price-level. 
C)  income taxes. 
D)  all of the above. 
A)  variable imports. 
B)  changes in the price-level. 
C)  income taxes. 
D)  all of the above.

Question 4

Productivity increases, brought about by increased education and training, may shift the aggregate supply curve outward.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  "The government isn't the solution; it's the problem." 
B)  "The government that governs least governs best." 
C)  "The American people want national defense; they want laws to be enforced; they want federal support for education and environmental protection, and they want transfer payments for the elderly and unemployed." 
D)  "If you ever got anything good out of the government you can be sure that some rich so-and-so got more." 
A)  "The government isn't the solution; it's the problem." 
B)  "The government that governs least governs best." 
C)  "The American people want national defense; they want laws to be enforced; they want federal support for education and environmental protection, and they want transfer payments for the elderly and unemployed." 
D)  "If you ever got anything good out of the government you can be sure that some rich so-and-so got more."

Question 6

Figure 11-3
 
In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in fixed taxes?

Accepted Answer

A)  C1 in graph (a) 
B)  C2 in graph (a) 
C)  C1 in graph (b) 
D)  C2 in graph (b) 
A)  C1 in graph (a) 
B)  C2 in graph (a) 
C)  C1 in graph (b) 
D)  C2 in graph (b)

Question 7

One of the objectives of supply-side policies is to

Accepted Answer

A)  focus attention on the trade-off between inflation and unemployment. 
B)  sharpen the trade-off between inflation and unemployment. 
C)  eliminate the trade-off between inflation and unemployment. 
D)  convince the public of the trade-off between inflation and unemployment. 
A)  focus attention on the trade-off between inflation and unemployment. 
B)  sharpen the trade-off between inflation and unemployment. 
C)  eliminate the trade-off between inflation and unemployment. 
D)  convince the public of the trade-off between inflation and unemployment.

Question 8

Ronald Reagan's presidency could be characterized as a period of

Accepted Answer

A)  passive monetary policy. 
B)  passive fiscal policy. 
C)  active fiscal policy. 
D)  active regulatory policy. 
A)  passive monetary policy. 
B)  passive fiscal policy. 
C)  active fiscal policy. 
D)  active regulatory policy.

Question 9

Which of the following is an example of contractionary fiscal policy?

Accepted Answer

A)  Cutting spending 
B)  Reducing taxes 
C)  Increasing spending 
D)  None of these 
A)  Cutting spending 
B)  Reducing taxes 
C)  Increasing spending 
D)  None of these

Question 10

The reason that the multiplier is smaller if there are variable taxes is that

Accepted Answer

A)  taxes add to government spending, which increases income. 
B)  people get angry about taxes and decide to work less. 
C)  tax increases shift the expenditure line upward. 
D)  part of an increase in income is taken away in taxes. 
A)  taxes add to government spending, which increases income. 
B)  people get angry about taxes and decide to work less. 
C)  tax increases shift the expenditure line upward. 
D)  part of an increase in income is taken away in taxes.

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

The government's fiscal policy is its plan for managing ______________ through its spending and taxing programs

The oversimplified formula for the multiplier yields a number that is too large due to the exclusion of

Productivity increases, brought about by increased education and training, may shift the aggregate supply curve outward.

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

Figure 11-3 In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in fixed taxes?

One of the objectives of supply-side policies is to

Ronald Reagan's presidency could be characterized as a period of

Which of the following is an example of contractionary fiscal policy?

The reason that the multiplier is smaller if there are variable taxes is that

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Us Economy

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Exam 27: Managing Aggregate Demand: Fiscal Policy

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

The government's fiscal policy is its plan for managing ______________ through its spending and taxing programs

The oversimplified formula for the multiplier yields a number that is too large due to the exclusion of

Productivity increases, brought about by increased education and training, may shift the aggregate supply curve outward.

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

Figure 11-3 In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in fixed taxes?

One of the objectives of supply-side policies is to

Ronald Reagan's presidency could be characterized as a period of

Which of the following is an example of contractionary fiscal policy?

The reason that the multiplier is smaller if there are variable taxes is that

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Us Economy

Filters