Government Expenditure and Sources Quiz

Contractionary fiscal policy is used to solve the problem of _____________________.

• unemployment

• recession

• deflation

• inflation

expansionary fiscal policy is done by increase ______a_____ and decrease_______b_________.

• a. government expenditure

  b. inflation

• a. inflation
  b. recession

• a. tax

  b. government expenditure

• a .government expenditure

  b .tax

expansionary fiscal policy is done by increase ______a_____ and decrease_______b_________.

• a. government expenditure

  b. inflation

• a. inflation
  b. recession

• a. tax

  b. government expenditure

• a .government expenditure

  b .tax

Contractionary fiscal policy is a macroeconomics policy that is implanted by the government to increase aggregate demand.

• TRUE

• FALSE

1. During a recession, which fiscal policy action is typically pursued to stimulate economic growth?

• a) Increasing government spending

• Decreasing government spending

• Increasing taxes

• Decreasing interest rate

fiscal policy is used to increases money supply in economic conduct by government

• TRUE

• FALSE