Multiple Choice
Which of the following statements is true ?
A) Fiscal policy is the manipulation of the nation's money supply to influence the nation's output, employment and price level.
B) Discretionary fiscal policy is the deliberate use of changes in government spending and taxes to stabilize the economy.
C) The tax multiplier is the change in aggregate demand resulting from an initial change in government spending.
D) A budget deficit exists when government tax revenues exceed government spending.
Correct Answer:

Verified
Correct Answer:
Verified
Q24: In the _ range of the aggregate
Q25: If no fiscal policy changes are made,
Q26: According to the Laffer curve, the federal
Q27: The unemployment compensation program:<br>A) makes recessions more
Q28: The greater the marginal propensity to consume
Q30: The spending multiplier is:<br>A) 1 / (1
Q32: Discuss the differences between Keynesian and supply-side
Q33: Using the aggregate demand and supply model,
Q34: The curve that reflects the view that
Q79: As the marginal propensity to consume (MPC)