Fiscal 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

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

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.

Reaganomics includes...

• tax cuts.

• spending cuts.

• decreased regulations.

• all of these.

The current national debt is about...

• $5 trillion.

• $10 trillion.

• $15 trillion.

• $20 trillion.