Fiscal & Monetary Policy

Inflation that results from an increase in aggregate demand.

• surplus
• stagflation
• demand-pull
• deficit

The problem attacked by Reaganomics.

• surplus
• stagflation
• demand-pull
• deficit

More revenue than expenditures.

• surplus
• stagflation
• demand-pull
• deficit

More expenditures than revenue.

• surplus
• stagflation
• demand-pull
• deficit

Inflation is measured by...

• Consumer Price Index (CPI).
• Gross National Product (GNP).
• Gross Domestic Product (GDP).
• Securities & Exchange Commission (SEC).

The purpose of fiscal policy is to...

• increase the money supply.
• increase economic efficiency.
• stabilize the economy.
• increase economic growth only.

Keynesian fiscal policy is known as ___ because it adjusts the ___ curve.

• supply side; supply
• supply side; demand
• demand side; supply
• demand side; demand

Money that households have after taxes is called...

• allowance.
• gross income.
• disposable income.
• deficit.

Keynesian fiscal policy cannot fix...

• inflation.
• stagflation.
• unemployment.
• contraction.

The problem of stagflation is addressed with...

• Keynesian fiscal policy.
• demand-side fiscal policy.
• Reaganomics.
• increasing taxes.