What do Social Securitytaxes pay for?

$ to older citizens, surviving family, certain disabilities

The Office of Managementand Budget

decides how much $ each gov't agency receives in budget.

An example of contractionary fiscal policy would be

decreasing government spending.

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Economics Macro - Practice 2

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This quiz provides some sample questions on important concepts in macroeconomics.

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Questions 10

Answers

1
The purpose of expansionaryfiscal policy is to
increase output.
increase separationbetween government and private industry.
slow the growth of the GDP.
prevent hyperinflation.
2
What do Social Securitytaxes pay for?
$ to older citizens, surviving family, certain disabilities
transportation and trainingexpenses for low-income people
benefits to federal workersand military personnel
benefits to those who areunemployed
3
When revenues exceedexpenditures,
there is a budget surplus.
the government must createmore money.
there is a budget deficit.
the government is forced toissue more bonds to raise money.
4
When you buy a UnitedStates Savings Bond, you
borrow money from a savingsand loan association.
donate money for specialgovernment projects.
loan money to thegovernment.
pay for your child’scollege education.
5
An example of an automaticstabilizer is
U.S. savings bonds.
inflation.
interest rates.
taxes.
6
When you drive away fromthe gas pump, you have just paid a(n)
estate tax.
import fee.
corporate income tax.
excise tax.
7
The main source of fundingfor your school probably comes from
state sales taxes.
payroll taxes.
federal income taxes.
local property taxes.
8
The Office of Managementand Budget
decides how much $ each gov't agency receives in budget.
final power to approve or not federal budget made byCongress
is part of the legislativebranch of government.
private agency that oversees preparation of budget.
9
An example of contractionary fiscal policy would be
decreasing government spending.
expanding government’srole in regulating private industry.
increasing production ofconsumer goods.
cutting taxes.
10
Your storereceipt says you paid 5% sales tax on sports equipment. This sales taxis example of
income tax.
progressive tax.
proportional tax.
regressive tax.

Economics Macro - Practice 2 Flashcards | StudBud