Review Quizizz Unit 6 Econ

The economy of Country A is undergoing a rapid increase in CPI. What type of fiscal policy would be appropriate?

The economy of Country B has experienced a 2-quarter decline of GDP. What type of fiscal policy would be appropriate?

• A: expansionary

  B: contractionary

• A: contractionary

  B: expansionary

Which headline represents a contractionary fiscal policy?

• "As a Recession Looms, Congress passes a Government Spending Bill"

• "GDP grows for 5th straight quarter. Congress gradually raises income taxes"

• "Congress lowers taxes as the stock market tumbles and consumer confidence drops"

• "Unemployment reaches a historic high. Congress passes a massive spending bill"

The government lowers taxes and increases spending. Which graph?

• A

• B

• C

• D

Which of these would lead to an expansion of the money supply?

• the Fed sells bonds

• the Fed lowers the discount rate

• the Fed raises the federal funds rate

• the Fed raises the required reserve rate (RRR)

The Fed increases the money supply. Which of the following would NOT take place as a result?

• price levels (CPI) increases

• GDP will increase

• unemployment will decrease

• interest rates will decrease

• people will spend less and save more

An economy is experiencing a rapid increase in CPI. Which of the following monetary policies would be appropriate?

• sell bonds, increase the RRR

• buy bonds, increase the RRR

• sell bonds, decrease the RRR

• buy bonds, decrease the RRR

To close an inflationary gap, the aggregate demand curve should shift...

• left

• right

Which of these is NOT true of supply-side economics?

• deregulation

• low taxes

• increased government spending

• decreased role of the government