Practice Quiz Chap 14 - POP QUIZ WORKSHEET 3:CHAPTER 14...

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
POP QUIZ WORKSHEET 3 :CHAPTER 14 NAME: __________________________________ COURSE: ________________________________ 1. Which of the following statements concerning fiscal policy is true? a. Fiscal policy is the manipulation of government spending and taxes in an effort to smooth out the business cycle. b. Expansionary fiscal policy is designed to reduce the income level in the economy. c. Contractionary fiscal policy will shift the AE curve upward. d. The automatic stabilizers destabilize the business cycle. 2. An assumption of fiscal policy is that: a. financing the deficit has offsetting effects. b. the government is not sure of the economy’s potential income level. c. the size of the government's debt matters. d. fiscal policy does not negatively affect other government goals. 5. Which of the following statements is true? a. A decrease in taxes and/or an increase in government spending will shift the AE curve downward. b. An example of a built-in stabilizer is unemployment compensation.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 4

Practice Quiz Chap 14 - POP QUIZ WORKSHEET 3:CHAPTER 14...

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

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