Fiscal Policy Application

1

If the federal government decides to raise taxes and reduce government spending, they are most likely trying to achieve which of the folloiwng?

an increase in aggregate demand and a decrease in real GDP

a dcrease in aggregate demand and an increase in real GDP

an increase in aggregate demand and real GDP.

a decrease in aggregate demand and real GDP

SSEMA3.b

1

Examine the image above. Assume that the federal government's fiscal policies led to the results shown in the image above wher AD0 shifts right to AD1.
Select the TWO actions that could have caused the impact above.

Reducing government expenditures

Reducing income taxes

Raising government expenditures

Raising income taxes

SSEMA3.b

1

The primary goal of contractionary fiscal policy is to

reduce unemployment

reduce price levels

increase aggregate supply

increase real GDP

SSEMA3.b

1

Tax revenue is $2.3 trillion in a country for 2018-2019.
Government expenditures in the country are $2.7 trillion.
Which of the following statements is true?

The country is running contractionary fiscal policy.

The country has a balanced budget.

The country has a budget deficit and will need to borrow $.4 trillion.

The country has a budget surplus and will have $.4 trillion left in the treasury.

SSEMA3.b

1

Expansionary fiscal policy is created by reducing taxes or increasing government spending.
Which of the following is a downside of expansionary fiscal policy?

an increase in the national debt.

an undesirable budget surplus.

the reduction of government services.

a reduction in interest rates.

SSEMA3.b

Fiscal Policy Application

If the federal government decides to raise taxes and reduce government spending, they are most likely trying to achieve which of the folloiwng?

Examine the image above. Assume that the federal government's fiscal policies led to the results shown in the image above wher AD0 shifts right to AD1. Select the TWO actions that could have caused the impact above.

The primary goal of contractionary fiscal policy is to

Tax revenue is $2.3 trillion in a country for 2018-2019.Government expenditures in the country are $2.7 trillion.Which of the following statements is true?

Expansionary fiscal policy is created by reducing taxes or increasing government spending.Which of the following is a downside of expansionary fiscal policy?

If the federal government decides to raise taxes and reduce government spending, they are most likely trying to achieve which of the folloiwng?

Examine the image above. Assume that the federal government's fiscal policies led to the results shown in the image above wher AD0 shifts right to AD1. Select the TWO actions that could have caused the impact above.

The primary goal of contractionary fiscal policy is to

Tax revenue is $2.3 trillion in a country for 2018-2019.Government expenditures in the country are $2.7 trillion.Which of the following statements is true?

Expansionary fiscal policy is created by reducing taxes or increasing government spending.Which of the following is a downside of expansionary fiscal policy?

Examine the image above. Assume that the federal government's fiscal policies led to the results shown in the image above wher AD0 shifts right to AD1.
Select the TWO actions that could have caused the impact above.

Tax revenue is $2.3 trillion in a country for 2018-2019.
Government expenditures in the country are $2.7 trillion.
Which of the following statements is true?

Expansionary fiscal policy is created by reducing taxes or increasing government spending.
Which of the following is a downside of expansionary fiscal policy?

Examine the image above. Assume that the federal government's fiscal policies led to the results shown in the image above wher AD0 shifts right to AD1.
Select the TWO actions that could have caused the impact above.

Tax revenue is $2.3 trillion in a country for 2018-2019.
Government expenditures in the country are $2.7 trillion.
Which of the following statements is true?

Expansionary fiscal policy is created by reducing taxes or increasing government spending.
Which of the following is a downside of expansionary fiscal policy?