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Unformatted text preview: q E‘r‘our location: Assessments > View All Submissions > View Attempt View Attempt 1 of 1 Title: Ch 10 Quiz Started: November El, 2009 11:28 PM Submitted: November 8, 2009 11:36 PM Time spent: 00:0?:42 Total score: 4l5 = 30% E Total score adjusted by 0.0 E Maximum possible score: 5 1.
Refer to the figure below. Which of the graphs is an example of stabilization polices; or actions to moye the economy
closer to full employment or potential output.
a A. The graph 0% Incorrect. This answer is correct, howeyerJ other choices are also
on the left. correct.
E. The graph
Refer to the diagram below. Which of the policies in the diagram is an ill—timed policy?
a E. E‘. Correct. The policy in graph E‘. fails to smoothout the business
cycle. it worsens the highs and lows.
C. Both A and
3. Supply-side economics is a school of economic thought that emphasizes: A. The negatiye
impacts of a
deficit on the economy as
a vvhole. E. The role
played by AD
the level of
AS. a C. The role 100% a Correct. Supply—side economics is a school of thought that
taxes play in emphasizes the role taxes play in the supply of output in the
the supply of economy. Supply-side economists look notjust at the effects of
output in the taxes on aggregate demand, as we did earlier in this chapter,
economy. but also on aggregate supply. D. The impact of
consumption. Score: 1,-‘1 Ivvhen the economy is in a recession, the government should: Student Value Correct Answer Feedback
Response A. Reduce
demand. a B. Increase 100% H Correct. Because changes in government purchases and taxes
government lead to changes in aggregate demand, they can affect the level
purchases or of real GDP, employment, and the price level. When the economy
decrease is in a recession, increases in government purchases or
taxes in decreases in taxes will increase aggregate demand.
demand. C. Decrease
supply. D. Change
supply. Score: 1,-‘1 Changes in taxes and spending that happen without actions by the government are called: Student Value Correct Answer Feedback
a B. Automatic 100% H Correct. Taxes and transfer payments that stabilize GDP vvithout stabilizers. reguiring explicit actions by policy makers are called automatic stabilizers. C. Discretionary
stabilizers. D. Autonomous
expenditures. Score: 1,-‘1 ...
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- Spring '09