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Unformatted text preview: Macroeconomics Summer 2011 Chapter 11 Homework (Due 07/18/2011) Student: ___________________________________________________________________________ 1. According to Keynes, the level of economic activity is predominantly determined by the level of: A. Aggregate supply. B. Aggregate demand. C. Unemployment. D. Interest rates. 2. Nearly half of the federal government's tax revenues comes from: A. Social Security payroll taxes. B. Customs, whiskey, and tobacco taxes. C. Individual income taxes. D. Corporate income taxes. 3. Which of the following is generally considered a desirable outcome of fiscal policy? A. More jobs B. Higher unemployment rates C. A higher price level D. Greater deficits 4. Which of the following is a fiscal policy tool used to stimulate the economy? A. Lower interest rates B. Increased imports C. Reducing inefficient employment of resources D. Increased government purchases 5. The total change in aggregate spending generated by increased government spending depends on the: 5....
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