Type Multiple Choice Points Awarded 11 Your Answers surplus Correct Answers in

Type multiple choice points awarded 11 your answers

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used to pay off past debt (retiring old debt). Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s):
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surplus Correct Answer(s) (in green) : deficit surplus either a. or b. all the above Question 18 : Liberals tend to believe in more active _______ policy (government intervention) while  conservatives believe in less government intervention. Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): fiscal Correct Answer(s) (in green) : physical spiritual mental fiscal Question 19 : A ___________ deficit is the amount of the deficit that would exist if the current G and T were applied given full employment. Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): structural Correct Answer(s) (in green) : structural natural un-natural none of the above Question 20 : There is often a moderate amount of ___________ with fiscal policy because many  variables can be changing at one time. Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): risk and uncertainty Correct Answer(s) (in green) : risk and uncertainty sweet taste
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sour taste sweet and sour Question 21 : The __________ budget multiplier is the amount of magnification applied to economic  activity when an equal change is made in G and T. Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): balanced Correct Answer(s) (in green) : deficit surplus structural balanced Question 22 : Assuming no change in government spending, an decrease in taxes of $100 billion with  an MPC of 0.80 will add a total  of $_____________ billion to the economy after the  multiplier effect. Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): 400 Correct Answer(s) (in green) : 800 400 200 500 Question 23 : If MPC is 0.9, then the simple multiplier is __________ . Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): 10 Correct Answer(s) (in green) : 10 5 4 2 Question 24 : Conservatives prefer to ____________ to stimulate the economy during a recessionary 
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gap (less than full employment and output). Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): decrease T Correct Answer(s) (in green) : increase T increase G decrease T decrease G Question 25 : In this example of an “inflation cooling” tax increase, the economy was initially  showing  a price level of $__________ before taxes were raised.
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Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): 2.34 Correct Answer(s) (in green) : 2.34 2.00 5000 5200 Question 26 : In this example of a Keynesian tax increase, the overall left-shift in Aggregate Demand  resulting from the tax increase causes the Nominal GDP to slide back to $________  where it is once again balanced with the Real Production GDP at full employment.
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Type:  Multiple Choice Points Awarded:  1/1 Your Answer(s): 5000
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