chap 11 -...

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Tax increases and government spending cuts by state governments during recessions often reduce the  expansionary impact of fiscal policy by the Federal government.    Student Response Value A. TRUE 100%  B. FALSE<br/><br/> Score: 1/1    2.   Suppose the Federal government had budget deficits of $40 billion in year 1 and $50 billion in year 2 but had  budget surpluses of $20 billion in year 3 and $50 billion in year 4. Also assume that it used its budget surpluses  to pay down the public debt. At the end of these four years, the Federal government's public debt would have:    Score: 1/1    3.        Refer to the above diagram, in which  Q f  is the full-employment output. The shift in the aggregate demand curve  from AD 3  to AD 2  could result from which of the following fiscal policy actions?   
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  Score: 1/1    4.   The average tax rate required to service the public debt is roughly measured by: 
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This note was uploaded on 10/19/2009 for the course ECON 2010 taught by Professor Staff during the Spring '08 term at Utah Valley University.

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chap 11 -...

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