�建 Microsoft Word �档

�建 Microsoft Word �档 - C HAP TER 12...

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CHAPTER 12 1. Which of the following government actions is an example of fiscal policy? A) Adjusting the money supply. B) Regulating utility prices. C) Increasing social security tax rates. D) Instituting wage and price controls. 2. A budget deficit is incurred whenever: A) Tax revenues fall short of expenditures over the fiscal year. B) Discretionary fiscal spending is used to achieve macro equilibrium. C) The U.S. Treasury engages in refinancing activities. D) The government uses fiscal policy. 3. With greater deficit spending, ceteris paribus, A) Aggregate spending should fall. B) Any inflationary gap would become larger. C) There are greater leakages. D) There is inadequate information to tell what happens to aggregate spending. 4. According to Keynes, an unbalanced budget is appropriate if: A) The economy is below full employment. B) Leakages and injections are out of balance. C) Macro equilibrium is above full employment. D) All of the above.
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This note was uploaded on 04/11/2011 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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�建 Microsoft Word �档 - C HAP TER 12...

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