Mac11.2:Fiscal Policy Application

Last updated almost 6 years ago
5 questions
1

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

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.

1

The primary goal of contractionary fiscal policy is to

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?

1

Expansionary fiscal policy is created by reducing taxes or increasing government spending.

Which of the following is a downside of expansionary fiscal policy?