
Fiscal Policy
Quiz
•
Other
•
12th Grade
•
Practice Problem
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Medium
Charlie Howard
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15 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does fiscal policy involve?
The government changing levels of taxation and government spending
Central banks changing interest rates
Businesses adjusting their investment strategies
Consumers changing their saving and spending habits
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the formula for aggregate demand (AD)?
AD = C + I + G - X + M
AD = C + I - G + X - M
AD = C - I + G + X + M
AD = C + I + G + X - M
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is one purpose of fiscal policy?
To reduce the money supply in the economy
To increase the national debt
To eliminate government spending
To stimulate economic growth in a recession
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does expansionary fiscal policy involve?
Decreasing AD by decreasing spending and increasing taxes
Increasing AD by decreasing spending and increasing taxes
Decreasing AD by increasing spending and cutting taxes
Increasing AD by increasing spending and cutting taxes
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the UK government's target for inflation?
1%
2%
5%
3%
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a primary budget deficit?
The total amount of money a government has in its reserves
The surplus of tax receipts over government spending
The total amount of money a country owes to its creditors
A measure of government spending minus tax receipts, ignoring interest payments
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the multiplier effect describe?
The impact of inflation on consumer spending
The effect of interest rates on investment
When an increase in withdrawals causes a decrease in Real GDP
When an increase in injections causes a bigger final increase in Real GDP
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