Econ Fiscal Policy Practice

Front

Which of the following would cause aggregate demand to decrease? Options: an increase in taxes, a decrease in taxes, an increase in government spending, an increase in exports

Back

an increase in taxes

Front

If imports increased, which of the following would occur?
Options: increase in aggregate demand, decrease in aggregate demand, no change to aggregate demand

Back

decrease in aggregate demand

Front

Which of the following shifters of aggregate demand would be impacted first by a change in interest rates? C, G, I, X-M

Back

I

Front

An increase in aggregate demand would shift the AD curve:

Back

to the right

Front

Which of the following are the most responsible for making fiscal policy decisions? The Department of Commerce, The Federal Reserve, The National Council of Economic Advisors, The President and Congress

Back

The President and Congress

Front

An action that the government might take when implementing expansionary fiscal policy would be: raising interest rates, reducing government spending, lowering taxes, decreasing the money supply

Back

lowering taxes

Front

If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government would mostly likely enact would be to:

Back

increase spending

Front

If a dramatic rise in prices occurs, which fiscal policy action would likely be taken? Options: Selling securities on the open market, Raising interest rates, Raising tax rates, Raising reserve requirements

Back

Raising tax rates

Front

A tax in which all income earners paid $2,000 would be an example of a:

Back

regressive tax

Front

How much in taxes would someone making $56,000 have to pay? (include the dollar sign, commas, and a decimal point) Example: $1,234.56

Back

$7,372.66