05 Jun Question (TCO 6) Fiscal policy refers to the
Question
(TCO 6) Fiscal policy refers to the
manipulation of government spending and taxes to stabilize domestic output, employment, and the price level.
manipulation of government spending and taxes to achieve greater equality in the distribution of income.
altering of the interest rate to change aggregate demand.
fact that equal increases in government spending and taxation will be contractionary.
Question 2. Question :
(TCO 6) An economist who favors smaller government would recommend
tax cuts during recession and reductions in government spending during inflation.
tax increases during recession and tax cuts during inflation.
tax cuts during recession and tax increases during inflation.
increases in government spending during recession and tax increases during inflation.
Chapter 30.
Points Received: 1 of 1
Comments:
Question 3. Question :
(TCO 6) The lag between the time and the need for fiscal action is recognized and the time the action is taken is referred to as the
crowding-out lag
recognition lag
operational lag
administrative lag
Chapter 30.
Points Received: 1 of 1
Comments:
Question 4. Question :
(TCO 5) An economy’s aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the
net export effect.
wealth effect.
real-balances effect.
multiplier effect.
Chapter 29.
Points Received: 1 of 1
Comments:
Question 5. Question :
(TCO 6) In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. We would expect this to
affect neither aggregate supply nor aggregate demand.
increase aggregate demand.
reduce aggregate demand.
reduce aggregate supply.
Chapter 29.
Points Received: 1 of 1
Comments:
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