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15 Qs

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15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is Expansionary Fiscal Policy and what is its primary objective?

A fiscal policy where government spending increases.

A fiscal policy where government spending decreases.

A fiscal policy where income increases.

A fiscal policy where income decreases.

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

In the context of an economic recession, governments often implement Expansionary Fiscal Policy for what purpose?

Increasing taxes.

Decreasing government spending.

Increasing government spending and/or decreasing taxes.

Increasing taxes and decreasing government spending.

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How can Expansionary Fiscal Policy affect unemployment rates and economic growth?

Increase unemployment, decrease growth.

Decrease unemployment, increase growth.

Increase unemployment, increase growth.

Decrease unemployment, decrease growth.

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is Contractionary Fiscal Policy primarily aimed at achieving?

Increasing government spending.

Decreasing government spending.

Increasing taxes.

Decreasing taxes.

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

In times of high inflation, governments often resort to which type of fiscal policy?

Expansionary Fiscal Policy.

Contractionary Fiscal Policy.

Neutral Fiscal Policy.

Progressive Fiscal Policy.

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

How does Contractionary Fiscal Policy typically impact aggregate demand and economic activity?

Increases aggregate demand, stimulates economic growth.

Decreases aggregate demand, slows down economic growth.

Increases aggregate demand, slows down economic growth.

Decreases aggregate demand, stimulates economic growth.

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What factors can influence the effectiveness of fiscal policy?

The size of the government.

The level of public debt.

The political climate.

All of the above.

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