Fiscal Policy Quiz

Which of the following best describes fiscal policy?

• the written document estimating the federal governments revenue and spending for a given year

• the use of government spending and revenue to influence the economy

• the 12 month period used for budgeting purposes

Name the 2 main tools the government uses to enact fiscal policy.

(a)  

Which part of government sets fiscal policy and the federal budget?

• the office of management of budget in the executive branch

• the office of management of budget in the the legislative branch

• the office of management of budget in the the judicial branch

The federal budget must be signed by the President by what date before the government shuts down?

(a)  

Which of the following fiscal policy tools is used predominantly by Republicans?

• tax cuts

• increased government spending

• increased taxes

Why does $10 billion in gov’t spending maybe result in $50 billion growth of GDP? What is this phenomenon called?

What effect does the government hope to have on business cycles through the use of fiscal policy?

Which of the following tools are mostly used by Democrats to influence fiscal policy?

• increased government spending

• tax cuts

• decreased government spending

In 1- sentences sentence explain the basic principles of Keynesian economics.

(a)  

In 1-2 sentences, explain the basic principles of classical economics.

(a)