Exam 11: Fiscal Policy

When the government competes with the private sector for loans,this is called

The government's decisions about spending and taxation that affect employment,output,and inflation are called

If tax cuts are stimulative,tax increases are

Government spending is funded by a system of

If the spending multiplier is 1.2,then a $100 billion increase in government spending will increase private sector spending by

What is one of the central concepts of supply-side economics?

Supply-side economics focuses on the

An increase in government spending is more likely to have a positive impact on jobs and output when

When government revenues exceed spending,that is called a

The portion that households spend of each dollar they receive is called the

An increasing budget deficit stimulates the economy

Supply-side economics argues that changes in ________ affect incentives to work.

Tax cuts tend to boost

The amount of government debt is called the public cost.

The transfer of domestic economic stimulus to foreign markets is known as

The multiplier effect of government spending can be stated as a __________ multiplier or a __________ multiplier.

When higher taxes discourage whatever activity is being taxed,that is called

Supply-side economics states that cutting taxes can stimulate enough work and investment to

Overseas leakage occurs when net imports exceed net exports.

The _____ is the overall economic effect that comes from government spending increases.