rhw5ans - RHW5 1 7 13 10 22 24 26 27 29 33 35 37 38 45 47...

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RHW5 1 7 13 10 22 24 26 27 29 33 35 37 38 45 47 48 52 56 57 60 62 64 Final Score Number of Points Number of Students 0 - 7 5 >7 - 14 0 >14 - 21 6 >21 - 28 20 >28 - 35 28 >35 - 42 47 >42 - 49 65 >49 - 56 69 >56 - 63 22 >63 - 67 8 Submissions 270 Total Score Possible 67 Mean 43.87 Median 45 Mode 52 Question1 - Single Correct 1.0 Point Which of the following is an advantage of automatic stabilizers? A The lag for automatic stabilizers is relatively short. B It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy. C There is virtually no administrative cost to implementing automatic stabilizers. D Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP. UGH – I’D VOTE FOR A, BUT BETTER ANSWER IS THAT THERE IS NO POLITICAL DECISION / IMPLEMENTATION LAG Question7 - Single Correct 1.0 Point The term "crowding out" refers to the phenomenon that occurs when increased government spending
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A raises the price level and reduces consumption. B leads to interest rates which reduces private investments. C leads to higher bond prices which decreases the demand for Treasury bonds. D leads to increased budget deficits that ultimately warrant increases in income taxes. SHOULD SAY HIGHER INTEREST RATES AND NOTE, PRIMARILY A LONG-RUN (NO LONGER IN RECESSION) PROBLEM Question13 - Single Correct 1.0 Point Which of the following describes a discretionary fiscal policy action/program? A the progressive income tax system B The government increases funding for the Dislocated Worker Program, a federal initiative that provides retraining and career counseling. C the unemployment compensation program D the system of welfare programs THE OTHERS ARE AUTOMATIC STABILIZERS, B IS AN ‘OPTIONAL’ (DISCRETIONARY) POLICY CHANGE Question20 - Single Correct 1.0 Point All of the following are examples of automatic stabilizers except A personal income taxes. B means-tested federal transfer payments. C welfare benefits. D government emergency spending. SEE ABOVE 22 24 26 27 29 33 35 37 38 45 47 48 52 56 57 60 62 64 Question22 - Single Correct 1.0 Point Government tax and expenditure policies affect real GDP are called A automatic fiscal policy. B discretionary fiscal policy.
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This note was uploaded on 10/09/2011 for the course ECON 103 taught by Professor Lin during the Spring '08 term at Rutgers.

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rhw5ans - RHW5 1 7 13 10 22 24 26 27 29 33 35 37 38 45 47...

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