Practice Quiz: Fiscal Policy

Place the following policy goals under the correct economic situation

Groups:

(a) During a recession

,

(b) During inflation

• Reduce the money supply

• Increase consumer confidence

• Increase employment

• Reduce overall demand

• Increase the money supply

• Discourage borrowing

Place the following policies into the correct category:

Groups:

(a) Recession

,

(b) Inflation

• Fund public works projects

• Implement stimulus packages

• Reduce government spending
• Increase tax rates

• Reduce business taxes

• Limit government hiring

'Fiscal policy' is a category of government actions involving:

• taxes

• spending

• security

• transportation

Match the following taxes to the level of government which collects them:

• Federal

• Sales Tax

• Local

• Social Security

• State

• Property Tax

Match the following taxes to the correct category:

• Sales Tax

• Progressive Tax

• Federal Income Tax

• Flat Tax

• Poll Tax

• Regressive Tax

Public schools in the U.S. are primarily funded by:

• Federal Income Taxes

• Local Property Taxes

• State Sales Taxes

• Federal Social Security Taxes

What type of policy is this?

Increasing unemployment benefits

• Expansionary

• Contractionary

What type of policy is this?

Reducing Social Security benefit payments

• Expansionary

• Contractionary

What type of policy is this?

Increasing spending on the military

• Expansionary

• Contractionary

What type of policy is this?

Lowering taxes on businesses

• Expansionary

• Contractionary