CH 12-updated.rtf - CHAPTER 12-FISCAL POLICY MULTIPLE CHOICE 1 Federal government outlays as a fraction of GDP tripled between 1959 and 2009 a True b

CH 12-updated.rtf - CHAPTER 12-FISCAL POLICY MULTIPLE...

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CHAPTER 12---FISCAL POLICYMULTIPLE CHOICE1.Federal government outlays as a fraction of GDP tripled between 1959 and 2009.a.Trueb.FalseANS:BPTS:1DIF:1LOC:Monetary and fiscal policyTOP:Thinking About Spending | Taxes | and the Budget2.If we look at governmental budgets over time using nominal figures, wea.have a clearer understanding of the real size of the budgetb.are able to focus on the real impact of government spending on potential GNPc.tend to overestimate the size of the budgetary growthd.usually underestimate the size of the burden of the debte.are ignoring what we can learn from nominal dataANS:CPTS:1DIF:2LOC:Monetary and fiscal policyTOP:Thinking About Spending | Taxes | and the Budget3.Which case represents the largest increase in the real national debt?4.Nominal federal spending is a5.From the 1960s through the 1990s military expenditures increased as a percentage of GDP and they were a major influence in the continued growth of government outlays.6.Over the past several decades, federal transfer payments as a fraction of GDP have trended upward.a.Trueb.False
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ANS:APTS:1DIF:1LOC:Monetary and fiscal policyTOP:Government Outlays7.Which of the following is a transfer payment?a.The federal government's budget deficitb.Unemployment compensation paymentsc.Military spendingd.Wages of government employeese.The excise tax on gasoline.ANS:BPTS:1DIF:2LOC:Monetary and fiscal policyTOP:Government Outlays
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