Econ Unit 4: Fiscal Policy Practice

Front

Who is in charge of fiscal policy?

Back

Government

Front

Taxing & spending to help the economy grow is referred to as

Back

expansionary policy

Front

Taxing & spending to slow the economy is referred to as

Back

contractionary policy

Front

Which of the following are responsible for making fiscal policy decision? The President and Congress, The Federal Reserve System, The National Council of Economic Advisors, The commerce Department

Back

The President and Congress

Front

An example of expansionary fiscal policy would be: cutting taxes., cutting government spending., cutting production of consumer goods., cutting prices of consumer goods.

Back

cutting taxes.

Front

If the unemployment rate is rising and GDP is falling, what fiscal policy action should the federal government MOST likely follow? Options: decreasing taxes, decreasing spending, decreasing the money supply, decreasing the reserve requirement.

Back

decreasing taxes.

Front

If an economy experiences a dramatic rise in prices, which fiscal policy action could be taken? Options: Reducing taxes, Increasing government spending, Reducing government spending, Raising interest rates

Back

Reducing government spending

Front

Fiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people.

Back

True

Front

An example of expansionary fiscal policy would be: cutting taxes., cutting government spending., cutting production of consumer goods., cutting prices of consumer goods.

Back

cutting taxes.

Front

Which of the following is not a tool of fiscal policy? Taxing, Spending, Interest Rates, All of these options are tools of fiscal policy.

Back

Interest Rates