Review 4/04

Who is responsible for fiscal policy?

• The President

• Congress

• The Federal Reserve

• The Supreme Court

Who is responsible for monetary policy?

• The Federal Reserve

• Congress

• The President

If using Fiscal Policy, what actions can the Government use?

• Raising or lowering taxes

• Raising or lowering government spending

• Both raising or lowering taxes and/or government spending

• Changing the money supply to change interest rates

If using monetary Policy, what actions can the Government use?

• Raising or lowering taxes

• Raising or lowering government spending

• Both raising or lowering taxes and/or government spending

• Changing the money supply to change interest rates

Which of the following are true about GDP (Gross Domestic Product)?

• GDP is used to determine the overall growth rate of the economy as a whole

• GDP is used to estimate the relative size of the economy

• GDP is the total value of all the finished goods and services produced within a country's borders in a given year

• All of these are true

The percentage change in prices from year to year is the

• Inflation rate

• Unemployment Rate

• GPD (Gross Domestic Product)

• Fiscal Policy

The percentage of people in the labor force who want a job but are currently not working makes up the

• inflation rate

• unemployment rate

• Gross Domestic Project (GDP)

• Monetary Policy

What types of tax takes a larger percent of income from higher income earners?

• Regressive

• Progressive

• Proportional (Flat)

A tax that takes a larger percentage of income from low-income groups

than from high-income groups.

• regressive

• progressive

• proportional

A tax that takes the same percentage of income from all income groups

• regressive

• progressive

• proportional