STDQs_11_

STDQs_11_ - MULTIPLE CHOICE 1"Fiscal Policy is the federal...

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MULTIPLE CHOICE 1. "Fiscal Policy" is the federal government's plan for a. international trade, designed to balance exports and imports. b. spending and taxes, designed to influence the level of aggregate demand. c. manipulating the money supply and the control of interest rates. d. All of the above are correct. ANS: B DIF: Moderate TOP: Introduction 2. Fiscal policy consists of a. taxes and interest rates. b. government purchases and defense spending. c. the money supply and taxes. d. taxes and government spending. ANS: D DIF: Easy TOP: Introduction 3. The government's fiscal policy is its plan to influence aggregate demand by changing a. the money supply. b. minimum wage levels. c. sales taxes. d. taxation and spending. ANS: D DIF: Easy TOP: Introduction 4. Historically, the government has used fiscal policy to affect the economy through a. central planning. b. indicative planning. c. aggregate demand. d. aggregate supply. ANS: C DIF: Easy TOP: Introduction 5. The use of spending and taxes by the government to influence aggregate demand is known as a. monetary policy. b. governmental policy. c. administrative policy. d. fiscal policy. e. federal policy. ANS: D DIF: Easy TOP: Introduction 6. In 2001, the U.S. economy was experiencing a(n) a. recessionary gap. b. inflationary gap. c. balance of trade deficit. d. hyperinflation. ANS: A DIF: Easy TOP: Introduction
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7. Appropriate fiscal policy in the U.S. in 2001 would attempt to a. increase taxes. b. decrease aggregate supply. c. increase aggregate demand. d. decrease aggregate demand. ANS: C DIF: Moderate TOP: Introduction 8. In 2001, President Bush and Congress stimulated aggregate demand by a. increasing taxes and government spending. b.
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This note was uploaded on 05/29/2008 for the course ECON 201 taught by Professor Joyce during the Spring '07 term at Drexel.

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STDQs_11_ - MULTIPLE CHOICE 1"Fiscal Policy is the federal...

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