Chapter 15 Quiz

policies based on demand-side economics

• Multiplier

• Fiscal Policy

• accelerator

• Keynesian Economics

• entitlement

change in overall spending caused by a change in investment spending

• Multiplier

• Fiscal Policy

• accelerator

• Keynesian Economics

• entitlement

benefit to eligible individuals

• Multiplier

• Fiscal Policy

• accelerator

• Keynesian Economics

• entitlement

change in investment spending caused by a change in overall spending

• Multiplier

• Fiscal Policy

• accelerator

• Keynesian Economics

• entitlement

government spending and revenue collection to manage the economy

• Multiplier

• Fiscal Policy

• accelerator

• Keynesian Economics

• entitlement

In the Keynesian model, GDP = C + I + G + (X - M), “G” stands for _______ .

• Government

• Growth

• Gross Domestic Product

• General Revenue

According to Keynesian economics, which sector of the economy could offset a decline in business spending?

• Consumer

• Business

• Government

• Foreign

n Keynes’s view, a short-term budget deficit due to government spending or tax cuts is _______ .

• to be avoided at all costs

• sometimes necessary to help stimulate the economy

• economically impossible

• morally wrong

The progressive income tax is an example of _______ .

• an entitlement

• priming the pump

• an automatic stabilizer

• government dependency

Fiscal policy may involve _______ .

• estimating the GDP

• regulating labor unions

• recognizing an economic problem

• taxing corporations