
Fiscal Policy Quiz

Quiz
•
Other
•
11th Grade
•
Medium
Leanne Magree
Used 2+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is fiscal policy primarily used for?
To control the nation's money supply and interest rates
To influence the nation's economic growth, employment, and price level through government spending and taxation
To manage the nation's foreign exchange rates
To regulate the stock market and financial institutions
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which type of fiscal policy would a government most likely implement during an economic downturn to boost real GDP?
Contractionary fiscal policy
Monetary policy
Expansionary fiscal policy
Supply-side policy
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does expansionary fiscal policy typically involve?
Decreasing government spending and increasing taxes
Increasing government spending and decreasing taxes
Increasing both government spending and taxes
Decreasing both government spending and taxes
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the main goal of contractionary fiscal policy?
To increase inflation
To decrease aggregate demand and reduce inflation
To boost consumer spending
To increase government provided goods and services
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What would be the effect of an increase in taxes?
Increase in disposable income for consumers
Decrease in disposable income for consumers
No change in disposable income for consumers
Increase in government spending
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the purpose of expansionary fiscal policy?
To decrease aggregate demand during economic growth
To increase aggregate demand during a downturn or recession
To balance the government's budget
To reduce government spending and increase taxes
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does expansionary fiscal policy typically involve?
Increasing taxes and reducing government spending
Reducing government spending and increasing exports
Increasing government spending and/or reducing taxes
Reducing taxes and increasing imports
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