11 May WHAT ARE THE TWO TOOLS OF FISCAL POLICY THAT GOVERNMENTS CAN USE TO AFFECT THE LEVEL OF AGGREGATE DEMAND?
What are the two tools of fiscal policy that governments can use to stabilize
an economy?
A)
government spending and technology improvements
B)
government spending and taxation
C)
taxation and controlling imports
D)
taxation and controlling exports
2)
Contractionary policies are policies designed to
A)
increase the level of real GDP.
B)
reduce the level of real GDP.
C)
increase government spending.
D)
increase the federal deficit.
3)
Expansionary policies are policies designed to
A)
increase the level of real GDP.
B)
reduce the level of real GDP.
C)
decrease government spending.
D)
reduce the federal deficit.
4)
What are the two tools of fiscal policy that governments can use to affect the
level of aggregate demand?
A)
government spending and taxation
B)
government spending and technology improvements
C)
taxation and controlling imports
D)
taxation and controlling exports
5)
In order to ________, a government must increase spending and decrease
taxation.
A)
increase aggregate demand
B)
decrease aggregate demand
C)
increase aggregate supply
D)
decrease aggregate supply
6)
In order to ________, a government must decrease spending and increase
taxation.
A)
increase aggregate demand
B)
decrease aggregate demand
C)
increase aggregate supply
D)
decrease aggregate supply
7)
As a result of an increase in the personal income tax rate, consumers are
likely to
A)
spend less.
B)
spend more.
C)
save more.
D)
earn more money.
8)
A decrease in the personal income tax rate ________ disposable income which
________ consumption.
A)
increases; increases
B)
increases; decreases
C)
decreases; decreases
D)
decreases; increases
9)
Tax cuts aimed at businesses can stimulate
A)
social spending.
B)
private consumption.
C)
investment spending.
D)
net exports.
10)
Expansionary policies are government policies that
A)
increase aggregate supply.
B)
decrease aggregate supply.
C)
decrease aggregate demand.
D)
increase aggregate demand.1)
What are the two tools of fiscal policy that governments can use to stabilize
an economy?A)
government spending and technology improvementsB)
government spending and taxationC)
taxation and controlling importsD)
taxation and controlling exports 2)
Contractionary policies are policies designed toA)
increase the level of real GDP.B)
reduce the level of real GDP.C)
increase government spending.D)
increase the federal deficit. 3)
Expansionary policies are policies designed toA)
increase the level of real GDP.B)
reduce the level of real GDP.C)
decrease government spending.D)
reduce the federal deficit. 4)
What are the two tools of fiscal policy that governments can use to affect the
level of aggregate demand?A)
government spending and taxationB)
government spending and technology improvementsC)
taxation and controlling importsD)
taxation and controlling exports 5)
In order to ________, a government must increase spending and decrease
taxation.A)
increase aggregate demandB)
decrease aggregate demandC)
increase aggregate supplyD)
decrease aggregate supply 6)
In order to ________, a government must decrease spending and increase
taxation.A)
increase aggregate demandB)
decrease aggregate demandC)
increase aggregate supplyD)
decrease aggregate supply 7)
As a result of an increase in the personal income tax rate, consumers are
likely toA)
spend less.B)
spend more.C)
save more.D)
earn more money. 8)
A decrease in the personal income tax rate ________ disposable income which
________ consumption.A)
increases; increasesB)
increases; decreasesC)
decreases; decreasesD)
decreases; increases 9)
Tax cuts aimed at businesses can stimulateA)
social spending.B)
private consumption.C)
investment spending.D)
net exports. 10)
Expansionary policies are government policies thatA)
increase aggregate supply.B)
decrease aggregate supply.C)
decrease aggregate demand.D)
increase aggregate demand.
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