What are the instruments for Fiscal Policy?

Government spending and taxation

the government policy of taxation and spending

Which of the following fiscal policies is expansionary?

increase taxes and govt spending by $100 million

Tools of contractionary fiscal policy are....

decreasing spending/ raising taxes

How could the government use fiscal and monetary policies to slow down the economy?

Increase the budget surplus and increase interest rates

Market-based supply-side policies may include...

reducing minimum wages and unemployment benefits

Why do we use fiscal policy?

all of these options are correct

Tools of expansionary fiscal policy are ....

increasing spending/ cutting taxes

studbud

Economic Policies

15 termsStudBud Administration377 plays

The questions provided are based on the topic Macro Economic Policies.

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
What are the instruments for Fiscal Policy?
Government spending and taxation
Quantitative Easing
Interest rates and money supply
Inflation
2
Which of the following policies can create a recession?
Supply-side policy
Expansionary fiscal policy
Expansionary monetary policy
Contractionary monetary policy
3
Fiscal policy is...
the control of the exchange rate
the banks' manipulation of interest rates
the government policy of taxation and spending
the central bank controlling the money supply
4
Expansionary Monetary and Expansionary Fiscal Policy…
all of the above
increases the price level
decreases unemployment
increases GDP
5
Which of the following fiscal policies is expansionary?
sell bonds
increase taxes and govt spending by $100 million
cut taxes and govt spending by 100 million each
6
Tools of contractionary fiscal policy are....
increasing spending/ raising taxes
decreasing spending/ raising taxes
increasing spending/ cutting taxes
decreasing spending/ cutting taxes
7
What do demand-side policies do?
reduce AS
stimulate AS
stimulate AD
reduce AD
8
Example of expansionary fiscal policy will be
Lower credit
Lower interest rate
Lower taxes
9
What group do supply-side policies target?
consumers
businesses
federal government
producers
10
Supplyside policies shift the
SRAS
LRAS
AD
11
How could the government use fiscal and monetary policies to slow down the economy?
Increase the budget surplus and increase interest rates
Increase the budget surplus and decrease interest rates
Increase the budget deficit and decrease interest rates
Increase the budget deficit and increase interest rates
12
Market-based supply-side policies may include...
managing the exchange rate
educating the retraining labour
subsidising public goods
reducing minimum wages and unemployment benefits
13
Supply-side policies aim to
increase AD
increase potential output
increase taxation
decrease LRAS
14
Why do we use fiscal policy?
all of these options are correct
influence AD
reduce unemployment
reduce inflation
15
Tools of expansionary fiscal policy are ....
increasing spending/ cutting taxes
decreasing spending/ raising taxes
decreasing spending/ cutting taxes
increasing spending/ raising taxes

Economic Policies Flashcards | StudBud