
Understanding Fiscal Policy

Interactive Video
•
Social Studies
•
9th - 10th Grade
•
Hard
Jennifer Brown
FREE Resource
5 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the two main components of fiscal policy?
Interest rates and inflation
Government spending and taxes
Government spending and monetary policy
Taxes and interest rates
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which type of fiscal policy involves automatic stabilizers?
Progressive fiscal policy
Monetary policy
Non-discretionary fiscal policy
Discretionary fiscal policy
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
During a recession, what action might the government take to boost the economy?
Decrease government spending
Increase taxes
Decrease interest rates
Increase government spending
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How can decreasing taxes help during a recession?
It slows down the economy
It reduces government revenue
It decreases aggregate demand
It increases disposable income and consumption
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the effect of increasing taxes during an inflationary period?
It decreases disposable income and consumption
It boosts aggregate demand
It increases disposable income
It speeds up the economy
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