Practice Quiz: Fiscal Policy

Place the following policy goals under the correct economic situation

Groups:

(a) During a recession

,

(b) During inflation

• Reduce the money supply

• Discourage borrowing

• Increase the money supply

• Increase employment

• Reduce overall demand

• Increase consumer confidence

Place the following policies into the correct category:

Groups:

(a) Recession

,

(b) Inflation

• Increase tax rates

• Reduce government spending
• Limit government hiring

• Reduce business taxes

• Implement stimulus packages

• Fund public works projects

'Fiscal policy' is a category of government actions involving:

• taxes

• spending

• security

• transportation

Match the following taxes to the level of government which collects them:

• State

• Social Security

• Local

• Sales Tax

• Federal

• Property Tax

Match the following taxes to the correct category:

• Poll Tax

• Flat Tax

• Sales Tax

• Regressive Tax

• Federal Income Tax

• Progressive Tax

Public schools in the U.S. are primarily funded by:

• Federal Income Taxes

• Local Property Taxes

• State Sales Taxes

• Federal Social Security Taxes

What type of policy is this?

Increasing unemployment benefits

• Expansionary

• Contractionary

What type of policy is this?

Reducing Social Security benefit payments

• Expansionary

• Contractionary

What type of policy is this?

Increasing spending on the military

• Expansionary

• Contractionary

What type of policy is this?

Lowering taxes on businesses

• Expansionary

• Contractionary