The Government and the Economy

The federal government's overall approach to spending and taxes is called

• Physical Policy
• Fiscal Policy
• Money
• Monetary Policy

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

An example of expansionary fiscal policy would be

• cutting taxes.
• cutting government spending.
• cutting production of consumer goods.
• cutting prices of consumer goods.

Fiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people.

• True
• False

Fiscal policy is defined as:

• the use of government taxing and spending to promote economic stability.

• the policy of laissez-faire.

• a set of government actions designed to increase unemployment over 5%.

• the use of government quotas to decrease GDP and unemployment.

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 largest single source of government revenue is

• Personal income tax.

• The GST

• Company Tax

• Fuel excises.

A tax in which the tax rate increases as the taxable amount increases.

• Indirect Tax
• Sales Tax
• Progressive Tax
• Regressive Tax