Fiscal Policy

Taxing & spending to help the economy grow is referred to as

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

The federal government's overall approach to spending and taxes is called

• Physical Policy
• Fiscal Policy
• Money
• Monetary Policy

An example of expansionary fiscal policy would be

• cutting taxes.
• cutting government spending.
• cutting production of consumer goods.
• cutting prices of consumer goods.

If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is 

• decreasing taxes.
• decreasing spending.
• decreasing the money supply.
• decreasing the reserve requirement.

Fiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people.

• True
• False

The Federal government is concerned that economic growth is too high, that it is unsustainable, and that inflation is resulting. Which of the following fiscal policies  might be enacted to reduce inflation?

• Increasing taxation
• Open market sales
• decreasing taxation
• Increasing government spending

An example of expansionary fiscal policy would be

• cutting taxes.
• cutting government spending.
• cutting production of consumer goods.
• cutting prices of consumer goods.

True or False-- the Federal Reserve helps with fiscal policy

• True
• False

Contractionary fiscal policy states that

• taxes should be cut to stimulate investment, which will create jobs

• an increase in government spending will increase demand and improve the economy

• cutting government spending and increasing taxes will improve inflation

• cutting taxes and increasing government spending will expand aggregate demand and output

This is a tax that where you pay more the more money you make

• regressive
• proportional
• progressive
• flat