{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


ECON_120_chap_10_test_ans - q E‘r‘our location...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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 on the right. C. Both graphs. 0. Neither graph. Score: 0,-‘1 2. Refer to the diagram below. Which of the policies in the diagram is an ill—timed policy? {A} (31 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 B. D. NeitherA nor E. Score: Ill 3. Supply-side economics is a school of economic thought that emphasizes: A. The negatiye impacts of a budget deficit on the economy as a vvhole. E. The role played by AD in determining 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 government spending on consumption. Score: 1,-‘1 Ivvhen the economy is in a recession, the government should: Student Value Correct Answer Feedback Response A. Reduce expenditures andleave taxes constant in order to stimulate aggregate 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. order to increase aggregate demand. C. Decrease government purchases or increase taxesin order to decrease aggregate supply. D. Change spending and taxation but not aggregate demand or aggregate supply. Score: 1,-‘1 Changes in taxes and spending that happen without actions by the government are called: Student Value Correct Answer Feedback Response A. Discretionary fiscal policy changes. 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 fiscal expenditures. Score: 1,-‘1 ...
View Full Document

{[ snackBarMessage ]}

Page1 / 3

ECON_120_chap_10_test_ans - q E‘r‘our location...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online