Unit 6 = Taxes Fiscal Policy Review Flashcardizz...

Front

Under what circumstances might the government use contractionary fiscal policy? Options: when it is trying to increase government revenue, when it is trying to increase government spending, when it is trying to fight inflation, when it is trying to end a recession

Back

when it is trying to fight inflation

Front

Which of the following would be an appropriate caption for this political cartoon about the use of economic stimulus plans, or expansionary fiscal policy? Stimulus plans are a risky gamble., Stimulus plans are risky but rewarding., Stimulus plans are likely to pay off well., Stimulus plans are less effective than contractionary policies.

Back

Stimulus plans are a risky gamble.

Front

How does the government of a country primarily generate its revenue?

Back

Collecting taxes from individuals and businesses

Front

How does a government decide what to spend money on?

Back

Budget

Front

Which best describes "expansionary fiscal policy"? Options: Increasing government spending and lowering taxes, Decreasing government spending and increasing taxes, Increasing government spending and increasing taxes, Decreasing government spending and lowering taxes

Back

Increasing government spending and lowering taxes

Front

Which best describes "contractionary fiscal policy"? Options: Increasing government spending and lowering taxes, Decreasing government spending and increasing taxes, Increasing government spending and increasing taxes, Decreasing government spending and lowering taxes

Back

Decreasing government spending and increasing taxes

Front

Which fiscal policy would you want to use at point 3?

Back

Expansionary

Front

Why would you want to practice contractionary fiscal policy?

Back

Too much economic growth too fast can lead to inflation

Front

The government deciding to reduce taxes and increase public spending to stimulate economic growth is an example of

Back

expansionary policy

Front

During an economic boom, the government decides to increase taxes and reduce public spending to avoid inflation. This approach is known as

Back

contractionary policy