1. Who is in charge of fiscal policy?

• Government

• Federal Reserve

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

• Expansionary policy

• Contractionary policy

• Monetary policy

• Budget deficit

The goal of monetary policy is to

• sell bonds

• reduce unemployment

• prevent inflationary and recessionary economic periods

• increase tariffs on foreign countries

During a recession, which of the following is likely to occur?

• an increase in real wages

• an increase in production

• and increase in the GDP growth rate

• an increase in the unemployment rate

Government budget comprises of

• government spending and income tax only

• government revenue and government expenditure

• transfer payment and government revenue

• government spending and indirect tax

A budget deficit occurs when...

• The government brings in more revenue than it spends for a given year

• The government spends more money than it brings in for a fiscal year

Monetary Policy is the Federal Reserve Systems attempt to...

• control the amount of money in circulation

• control the Federal Government's debt

• control state governments' spending

• none of these answers are correct.

Increase in the national debt would be caused by

• increasing govt. spending and increase taxes

• increasing govt. spending and decrease taxes

• decreasing govt. spending and increase taxes

• increase interest rates and decrease the money supply

During a period of recession the best action would be

• increase the money supply and lower interest rates

• decrease govt. spending and decrease taxes

• decrease the money supply and increase govt. spending

• increase interest rates and decrease the money supply

What is the equation of GDP?

• C + I + (X+N)

• C + I + G

• C + I + G + (X-N)

• C + G + U + (X+N)