Chapter 15 PQ

Chapter 15 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) Which of the following would be classified as fiscal policy? A) The federal government passes tax cuts to encourage firms to reduce air pollution. B) The Federal Reserve cuts interest rates to stimulate the economy. C) States increase taxes to fund education. D) The federal government cuts taxes to stimulate the economy. E) A state government cuts taxes to help the economy of the state. 1) 2) The increase in the amount the government collects in taxes when the economy expands and the decrease in the amount the government collects in taxes when the economy goes into a recession is an example of A) automatic monetary policy. B) automatic stabilizers. C) discretionary monetary policy. D) discretionary fiscal policy. 2) Figure 15 - 1 3) Refer to Figure 15 - 1. An increase in taxes would be depicted as a movement from ________, using the static AD - AS model in the figure above. A) B to A B) A to B C) E to B D) C to D E) B to C 3) 4) Refer to Figure 15 - 1. Suppose the economy is in a recession and expansionary fiscal policy is pursued. Using the static AD
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This note was uploaded on 05/02/2009 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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Chapter 15 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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