Fiscal Policy Review

Front

How does the government of a country primarily generate its revenue?

Back

Collecting taxes from individuals and businesses

Front

How does a government decide what to spend money on?

Back

Budget

Front

Which best describes "expansionary fiscal policy"? Options: Increasing government spending and lowering taxes, Decreasing government spending and increasing taxes, Increasing government spending and increasing taxes, Decreasing government spending and lowering taxes

Back

Increasing government spending and lowering taxes

Front

Which best describes "contractionary fiscal policy"? Options: Increasing government spending and lowering taxes, Decreasing government spending and increasing taxes, Increasing government spending and increasing taxes, Decreasing government spending and lowering taxes

Back

Decreasing government spending and increasing taxes

Front

Which fiscal policy would you want to use at point 3?

Back

Expansionary

Front

Why would you want to practice contractionary fiscal policy?

Back

Too much economic growth too fast can lead to inflation

Front

The government deciding to reduce taxes and increase public spending to stimulate economic growth is an example of

Back

expansionary policy

Front

During an economic boom, the government decides to increase taxes and reduce public spending to avoid inflation. This approach is known as

Back

contractionary policy

Front

During an economic expansion, the Federal Government should use...

Back

a contractionary fiscal policy

Front

An example of expansionary fiscal policy would be: cutting taxes., cutting government spending., cutting production of consumer goods., cutting prices of consumer goods.

Back

cutting taxes.