FISCAL POLICY

The main tool of fiscal policy is

• the Commonwealth govt budget.

• the GST

• the Cash Rate

• govt spending

A surplus budget is one where

• government revenue is less than government spending

• government revenue exceeds government expenditure

• spending on imports exceeds export earnings

• spending on imports is less than export earnings.

A deficit budget is one where

• government revenue is less than government spending

• government revenue exceeds government revenue

• spending on imports exceeds export earnings

• spending on imports is less than export earnings.

The most desirable budget outcome is

• a balanced budget.

• a surplus budget.

• a deficit budget

• one appropriate for current economic conditions.

The Federal Treasurer is

• Josh Frydenberg

• Scott Morrison.

• Julie Bishop

• Paul Keating

Which government department is responsible for the budget?

• The RBA

• Treasury.

• The Parliament

• The liberal party

A budget deficit is a

• net leakage from the circular flow of income.

• net injection into the circular flow of income

• a leakage.

• an injection

The largest single source of government revenue is

• Personal income tax.

• The GST

• Company Tax

• Fuel excises.

The impact lag for fiscal policy is

• shorter than for monetary policy.

• longer than for monetary policy.

• about the same as for monetary policy.

• long and indeterminate

Which of the following do you think would have the greatest impact on economic activity?

• A $1bn increase in government spending.

• A $1bn tax cut.