�建 Microsoft Word �档

�建 Microsoft Word �档 - CHAPTER 11 1....

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CHAPTER 11 1. Fiscal policy is: A) An internal market force. B) An external shock. C) The use of budget levers to influence the macroeconomy. D) A macroeconomic outcome. 2. Fiscal stimulus can be achieved by: A) Decreasing taxes. B) Increasing government spending on goods and services. C) Increasing transfer payments. D) All of the above. 3. In Keynesian theory, at macro equilibrium: A) The economy may or may not be at full employment. B) Aggregate demand intersects aggregate supply. C) The economy will stay at that output level, ceteris paribus. D) All of the above. 4. Ceteris paribus, if the government transferred income from individuals with a low MPC to those with a high MPC, aggregate demand would: A) Increase. B) Decrease. C) Stay the same. D) Increase or decrease, but not because of the MPC. 5. Suppose the consumption function is C = 100 + 0.90Y. If the government stimulates the economy with $50 billion in increased government purchases, aggregate expenditure would rise by: A) $50 billion. B) $450 billion.
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�建 Microsoft Word �档 - CHAPTER 11 1....

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