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What is Expansionary Fiscal Policy and what is its primary objective?

• A fiscal policy where government spending increases.

• A fiscal policy where government spending decreases.

• A fiscal policy where income increases.

• A fiscal policy where income decreases.

In the context of an economic recession, governments often implement Expansionary Fiscal Policy for what purpose?

• Increasing taxes.

• Decreasing government spending.

• Increasing government spending and/or decreasing taxes.

• Increasing taxes and decreasing government spending.

How can Expansionary Fiscal Policy affect unemployment rates and economic growth?

• Increase unemployment, decrease growth.

• Decrease unemployment, increase growth.

• Increase unemployment, increase growth.

• Decrease unemployment, decrease growth.

What is Contractionary Fiscal Policy primarily aimed at achieving?

• Increasing government spending.

• Decreasing government spending.

• Increasing taxes.

• Decreasing taxes.

In times of high inflation, governments often resort to which type of fiscal policy?

• Expansionary Fiscal Policy.

• Contractionary Fiscal Policy.

• Neutral Fiscal Policy.

• Progressive Fiscal Policy.

How does Contractionary Fiscal Policy typically impact aggregate demand and economic activity?

• Increases aggregate demand, stimulates economic growth.

• Decreases aggregate demand, slows down economic growth.

• Increases aggregate demand, slows down economic growth.

• Decreases aggregate demand, stimulates economic growth.

What factors can influence the effectiveness of fiscal policy?

• The size of the government.

• The level of public debt.

• The political climate.

• All of the above.

During periods of economic recession, which fiscal policy measure is commonly considered more effective?

• Expansionary Fiscal Policy.

• Contractionary Fiscal Policy.

• Neutral Fiscal Policy.

• Progressive Fiscal Policy.

How is the effectiveness of fiscal policy typically measured?

• By its impact on inflation rates.

• By its impact on unemployment rates.

• By its impact on GDP growth.
  

• By its impact on stock market performance.

What is the primary purpose of taxation in fiscal policy?

• To redistribute income and wealth.

• To stimulate economic growth.

• To increase government savings.

• To decrease government expenditures.