1 / 13

Fiscal Policy

32. Fiscal Policy. CLICKER QUESTIONS. Checkpoint 32.3. Checkpoint 32.1. Checkpoint 32.2. Question 8. Question 4. Question 1. Question 9. Question 5. Question 2. Question 6. Question 10. Question 3. Question 7. CHECKPOINT 32.1. Question 1

ekuehn
Download Presentation

Fiscal Policy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 32 Fiscal Policy CLICKER QUESTIONS

  2. Checkpoint 32.3 Checkpoint 32.1 Checkpoint 32.2 Question 8 Question 4 Question 1 Question 9 Question 5 Question 2 Question 6 Question 10 Question 3 Question 7

  3. CHECKPOINT 32.1 Question 1 When government outlays exceed tax revenues, the government ______. • has a budget with a positive balance • has a budget deficit • has a budget surplus • has a budget with a negative debt • must cut its expenditure because outlays cannot exceed tax revenues

  4. CHECKPOINT 32.1 Question 2 National debt decreases in a given year when the government of the country has a ______. • budget deficit • balanced budget • budget supplement • budget surplus • zero budget balance

  5. CHECKPOINT 32.1 Question 3 In the United States, _______ proposes the budget, and _____ signs the budget act into law. • Congress; Congress • the House of Representatives; the president • the Senate; the Treasury Secretary • the president; Congress • the Treasury Secretary; Congress

  6. CHECKPOINT 32.2 Question 4 The ____ view says that fiscal stimulus has a multiplier effect that makes it a ____ tool to fight a deep recession. • mainstream; useful • mainstream; weak • Keynesian; useful • Keynesian; useless • None of the above answers is correct.

  7. CHECKPOINT 32.2 Question 5 An example of fiscal stimulus policy is ______. • the automatic increase in needs-tested spending in a recession • induced taxes • a decrease government expenditure on goods and services • a decrease in needs-tested spending • a cut in taxes

  8. CHECKPOINT 32.2 Question 6 If the economy is at an above full-employment equilibrium, ____ gap exists, and discretionary fiscal policy that ____ will return real GDP to potential GDP. • an inflationary; increases aggregate demand • an inflationary; decreases aggregate demand • a recessionary; increases aggregate supply • a recessionary; decreases aggregate supply • a recessionary; decreases aggregate demand

  9. CHECKPOINT 32.2 Question 7 Discretionary fiscal policy is hampered by _____. • induced taxes and automatic stabilizers • law-making time lags, estimation of potential GDP, and economic forecasting • economic forecasting, law-making time lags, and induced taxes • automatic stabilizers, law-making time lags, and potential GDP estimation • automatic stabilizers and induced taxes

  10. CHECKPOINT 32.3 Question 8 Full employment is determined in the market for ____ and that quantity, along with the ____, determines potential GDP. • loanable funds; production function • goods and services; labor market • labor; tax rate • labor; production function • labor; tax wedge

  11. CHECKPOINT 32.3 Question 9 The supply-side effects of an income tax cut ____ potential GDP and ____ aggregate supply. • increase; increase • increase; decrease • decrease; increase • decrease; decrease • increase; do not change

  12. CHECKPOINT 32.3 Question 10 If fiscal stimulus creates a large budget ____, then in the long run, economic growth will ____. • surplus; increase • surplus; decrease • deficit; increase • deficit; decrease • balance; not change

More Related