Unit 4 - Fiscal Policy
Flashcard
•
Social Studies, Other
•
12th Grade
•
Practice Problem
•
Hard
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1.
FLASHCARD QUESTION
Front
A government spending and taxation policy to achieve macroeconomic goals is known as:
Back
fiscal policy.
2.
FLASHCARD QUESTION
Front
When the federal government is running a budget deficit:
Back
government expenditures exceed government tax revenues.
3.
FLASHCARD QUESTION
Front
To combat a recession, fiscal policy recommends: an increase in government spending.
Back
an increase in government spending.
4.
FLASHCARD QUESTION
Front
If the economy was about to enter a period of inflation, which of the following would be the most appropriate policy? A tax increase. A increase in government spending and decrease in taxes. An increase in government spending. A tax decrease.
Back
A tax increase.
5.
FLASHCARD QUESTION
Front
An expansionary fiscal policy may include: increases in government spending, discretionary increases in transfer payments, reductions in taxes.
Back
All of these.
6.
FLASHCARD QUESTION
Front
Unemployment compensation is an example of a(n):
Back
automatic stabilizer.
7.
FLASHCARD QUESTION
Front
To help combat inflation, the government could: run budget deficits, decrease taxes, increase government spending, run budget surpluses.
Back
run budget surpluses.
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