Econ - Ch. 15: Fiscal Policy

The total value in dollars of all the goods and services sold in a country during a single year is referred to___________.

• Inflation

• GDP

• CPI

• unemployment

The Consumer Price Index (CPI) measures___________.

• inflation

• GDP

• unemployment

The nations GDP goes through periods or ups and downs called the ______________.

• Business cycle

• GDP

• Inflation

When the GDP and Jobs are up, the economy is in a________.

• contraction

• recession

• expansion

When the GDP starts to decrease after the peak the economy is in a__________.

• recession

• depression

• contraction

Supply-side economics requires the government to provide tax-increases to corporations in order to increase wages and lower the unemployment rate.

• True

• False

Fiscal policy aims to influence the economic activity through the use of

• money supply and interest rate.

• exchange rate.

• government spending and taxation.

• direct and indirect taxation.

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

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

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

Taxing & spending to slow the economy is referred to as 

• budget surplus 
• monetary policy
• contractionary policy
• budget deficit