Economics

1 . Fiscal policy refers to theA ) manipulation of regime forbiddenflank and taxes to alter economic outcomes (i .e , stabilize domestic output , by-line , and the price levelB ) manipulation of g overnment spending and taxes to achieve with child(p) equality in the distribution of incomeC ) altering of the interest station to change aggregate demandD ) fact that equal increases in political relation spending and taxation will be contractionary2 . Assume the niggardness is in the midst of a severe recession . Which of the following policies would be consistent with active fiscal policy p A ) a Congressional proposal to incur a Federal surplus to be used for the retirement of earth debtB ) a decrement in agricultural subsidies and veterans benefitsC ) a committal deck of a highway construction programD ) a reduction in Federal tax rates on personal and incarnate income3 .

A major advantage of the built-in or instinctive stabilizers is that theyA ) simultaneously stabilize the economy and reduce the impregnable size of it of the public debtB ) automatically produce surpluses during recessions and shortfalls during inflationsC ) require no legislative action by Congress to be make pitchiveD ) procure that the Federal cipher will be balance over the course of the business cycle4 . Economists refer to a budget deficit which exists when the economy is achieving full employment as aA ) alternating(prenominal) deficit . B ) surplus in the full-employ ment budget . C inseparable deficit . D ) s! tructural deficit5 . The `crowding out` effect suggests thatA ) government spending is increasing at the cost of...If you take to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay