Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

MCQs on fiscal policy.

314_fiscal policy.png

1. Refer to Figure A. In order for the economy pictured above to get back to RGDPNR, this economy could use:

a) Decreased taxes also increased government purchases.

b) Increased taxes also increased government purchases.

c) Decreased taxes also decreased government purchases.

d) Increased taxes also decreased government purchases.

2. In the short run, expansionary fiscal policy can cause a rise in real GDP:

a) In combination with a rise in the price level.

b) In combination with no rise in the price level.

c) In combination with a reduction in the price level.

d) In combination with a rise or a reduction in the price level, depending on the economy.

3. Starting from long-run equilibrium also a balanced budget, expansionary fiscal policy will tend to:

a) Move the federal budget toward surplus also increase net exports.

b) Move the federal budget toward surplus also decrease net exports.

c) Move the federal budget toward deficit also increase net exports.

d) Move the federal budget toward deficit also decrease net exports.

4. If the government wanted to offset the effect of a fall in consumer confidence on AD, it might:

a) Decrease government purchases.

b) Decrease taxes.

c) Decrease transfer payments.

d) Do either a) or c).

5. If investment decreases by $20 billion also the MPC = 0.8, the resulting decrease in the consumption component of AD is:

a) $16 billion.

b) $4 billion.

c) $100 billion.

d) $80 billion.

6. To achieve a $50 billion decrease in AD, if the MPC is 0.8, Illustrate what decrease in government purchases would be called for?

a) $10 billion

b) $40 billion

c) $50 billion

d) $62.5 billion

7. The multiplier effect is based on the fact which ____ by one person is ____to another.

a) Income; income

b) Expenditures; expenditures

c) Expenditures; income

d) Income; expenditures

8. If the government needed to move the economy out of a present recession, that the following might be an appropriate policy action?

a) Decrease taxes

b) Increase government purchases of goods also services

c) Increase transfer payments

d) Any of the above.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M920371

Have any Question? 


Related Questions in Business Economics

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

Assignmentmoral and ethical requirements should serve as

Assignment Moral and ethical requirements should serve as drivers which encourage a business to invest in or spend money on cybersecurity products, services, and programs. You have been invited to participate in a "light ...

1what is the production possibilities curve and how is it

1. What is the production possibilities curve and how is it useful? 2. What 4 factors contribute to determining any point in this model? 3. How would we apply this framework to the real world? 4. You are planning to expa ...

In the united states as in most countries we value the

In the United States, as in most countries, we value the benefits of a free and competitive market. This suggests an interesting question: what if there were to be no Antitrust laws or other regulations on business activ ...

Assessment task in this assessment students are required to

ASSESSMENT TASK: In this assessment, students are required to demonstrate their ability to apply economic principles learnt in this subject to analysing real-world business operations and evaluate how their long-run busi ...

Assignmentyou must submit 2 files to this link once done as

Assignment You must submit 2 files to this link once done as follows: Part 1) An MS Excel spreadsheet (.xls or .xlsx no other file formats will be accepted) use the dataset spreadsheet provided for the assignment and inc ...

Cite the sources used to answer this question provide the

Cite the source(s) used to answer this question. Provide the source(s) below your response and apply APA guidelines for references. 1) Class, is it possible for a business to show an accounting profit, but actually earn ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen