Question 1

Reductions in private spending as a result of increased government spending or the need to finance a budget deficit is called

Accepted Answer

A)  pushing in. 
B)  rushing forth. 
C)  crowding in. 
D)  crowding out. 
A)  pushing in. 
B)  rushing forth. 
C)  crowding in. 
D)  crowding out.

Question 2

-Refer to Exhibit 11-2.At point A,if we cut tax rates slightly,tax revenues will

Accepted Answer

A)  increase. 
B)  decrease. 
C)  will not change. 
D)  drop to zero. 
A)  increase. 
B)  decrease. 
C)  will not change. 
D)  drop to zero.

Question 3

Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP.Keynesians might advise a policy of tax __________ to shift __________.

Accepted Answer

A)  increases; SRAS to the left 
B)  increases; AD to the left 
C)  cuts; SRAS to the right 
D)  cuts; AD to the right 
A)  increases; SRAS to the left 
B)  increases; AD to the left 
C)  cuts; SRAS to the right 
D)  cuts; AD to the right

Question 4

All other things held constant,lower marginal (income)tax rates

Accepted Answer

A)  necessarily increase tax revenues. 
B)  necessarily decrease tax revenues. 
C)  decrease the attractiveness of productive activities relative to leisure and tax- avoidance activities,and shift the SRAS curve rightward. 
D)  do not affect the attractiveness of productive activities relative to leisure and tax- avoidance activities and therefore the SRAS does not shift rightward or leftward. 
E)  increase the attractiveness of productive activities relative to leisure and tax- avoidance activities and shift the SRAS curve rightward. 
A)  necessarily increase tax revenues. 
B)  necessarily decrease tax revenues. 
C)  decrease the attractiveness of productive activities relative to leisure and tax- avoidance activities,and shift the SRAS curve rightward. 
D)  do not affect the attractiveness of productive activities relative to leisure and tax- avoidance activities and therefore the SRAS does not shift rightward or leftward. 
E)  increase the attractiveness of productive activities relative to leisure and tax- avoidance activities and shift the SRAS curve rightward.

Question 5

When we speak of expansionary fiscal policy,we are talking about policymakers __________ government spending,or __________ taxes,or both.

Accepted Answer

A)  decreasing; decreasing 
B)  increasing; increasing 
C)  increasing; decreasing 
D)  decreasing; increasing 
A)  decreasing; decreasing 
B)  increasing; increasing 
C)  increasing; decreasing 
D)  decreasing; increasing

Question 6

A budget deficit

Accepted Answer

A)  occurs when government expenditures exceed tax revenues. 
B)  occurs when tax revenues exceed government expenditures. 
C)  occurs when transfer payments exceed tax revenues. 
D)  will always result when Congress and the president cannot agree on expenditures. 
E)  occurs when monetary policy works in the opposite direction of fiscal policy. 
A)  occurs when government expenditures exceed tax revenues. 
B)  occurs when tax revenues exceed government expenditures. 
C)  occurs when transfer payments exceed tax revenues. 
D)  will always result when Congress and the president cannot agree on expenditures. 
E)  occurs when monetary policy works in the opposite direction of fiscal policy.

Question 7

-Refer to Exhibit 11-4.If a person's taxable income is $30,000,how much does he pay in taxes?

Accepted Answer

A)  $6,000 
B)  $1,400 
C)  $5,300 
D)  $4,850 
A)  $6,000 
B)  $1,400 
C)  $5,300 
D)  $4,850

Reductions in private spending as a result of increased government spending or the need to finance a budget deficit is called

-Refer to Exhibit 11-2.At point A,if we cut tax rates slightly,tax revenues will

Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP.Keynesians might advise a policy of tax to shift .

All other things held constant,lower marginal (income)tax rates

When we speak of expansionary fiscal policy,we are talking about policymakers government spending,or taxes,or both.

A budget deficit

-Refer to Exhibit 11-4.If a person's taxable income is $30,000,how much does he pay in taxes?

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

Exam 11: Monopolistic Competition, oligopoly, and Game Theory

Reductions in private spending as a result of increased government spending or the need to finance a budget deficit is called

-Refer to Exhibit 11-2.At point A,if we cut tax rates slightly,tax revenues will

Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP.Keynesians might advise a policy of tax __________ to shift __________.

All other things held constant,lower marginal (income)tax rates

When we speak of expansionary fiscal policy,we are talking about policymakers __________ government spending,or __________ taxes,or both.

A budget deficit

-Refer to Exhibit 11-4.If a person's taxable income is $30,000,how much does he pay in taxes?

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP.Keynesians might advise a policy of tax to shift .

When we speak of expansionary fiscal policy,we are talking about policymakers government spending,or taxes,or both.