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Fical Policy

Fical Policy

Assessment

Presentation

Other

University

Hard

Created by

Arya Gopan

FREE Resource

7 Slides • 9 Questions

1

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Open Ended

In what ways can changes in government expenditure and taxation impact the economy?

4

Multiple Choice

Why is fiscal policy considered significant in influencing a country's economy?

1

Because it determines the government’s budget only

2

Because it affects aggregate demand, resource allocation, and income distribution

3

Because it is unrelated to economic activity

4

Because it only involves taxation

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6

Open Ended

Explain how fiscal policy can influence aggregate demand and economic activity.

7

Multiple Choice

Which of the following is NOT one of the three positions of fiscal policy?

1

Neutral

2

Expansionary

3

Contractionary

4

Inflationary

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9

Multiple Select

Which of the following are objectives of fiscal policy?

1

To achieve desirable price level

2

To achieve desirable consumption level

3

To achieve desirable employment level

4

To achieve desirable income distribution

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Fill in the Blanks

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13

Open Ended

Discuss how surplus budgets can help in controlling inflation, and why fiscal measures alone may not be sufficient.

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15

Open Ended

How can changes in taxation and government spending impact the economy?

16

Multiple Choice

What are the two major instruments of fiscal policy?

1

Government expenditure and taxation

2

Monetary policy and interest rates

3

Foreign exchange and trade policy

4

Subsidies and price controls

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