A decrease in individual income taxes disposable income which consumption

A decrease in individual income taxes disposable

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67) A decrease in individual income taxes ________ disposable income, which ________ consumptionspending.A) increases; increasesB) decreases; decreasesC) increases; decreasesD) decreases; increasesAnswer: A67)Page Ref: 945-946/563-564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.68) Tax increases on business income decrease aggregate demand by decreasing68)Page Ref: 945-946/563-564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.69) If the economy is growing beyond potential real GDP, which of the following would be anappropriate fiscal policy to bring the economy back to long-run aggregate supply? An increaseinPage Ref: 945-946/563-564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.70) Which of the following is considered expansionary fiscal policy?70)Page Ref: 945-946/563-564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.71) Contractionary fiscal policy to prevent real GDP from rising above potential real GDP wouldcause the inflation rate to be ________ and real GDP to be ________.A) lower; lowerB) higher; higherC) lower; higherD) higher; lower71)Answer: APage Ref: 945-946/563-564Learning Outcome: Macro-9: Discuss fundamental approaches to fiscal policy.14
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Figure 16-272)Refer to Figure 16-2.In the graph above, if the economy is at pointA, an appropriate fiscal policyby Congress and the president would be to72)Page Ref: 945-946/563-564Learning Outcome: Macro-6: Explain the aggregate supply-aggregate demand model.73)Refer to Figure 16-2.In the graph above, if the economy is at pointA, an appropriate fiscal policyby Congress and the president would be toPage Ref: 945-946/563-564Learning Outcome: Macro-6: Explain the aggregate supply-aggregate demand model.15
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