What are the two main tools the government uses to stabilize the economy?

FISCAL/MONETARY POLICY REVIEW

Passage
•
Social Studies
•
12th Grade
•
Medium

Joseph Michalski
Used 1+ times
FREE Resource
40 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Fiscal Policy and Monetary Policy
Taxation and Spending
Interest Rates and Inflation Control
Subsidies and Tariffs
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary goal of contractionary fiscal policy?
Reduce inflation and return unemployment to the natural rate
Increase government spending
Decrease unemployment
Increase disposable income
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a trade-off of increasing government spending without raising taxes?
Budget Deficit
Budget Surplus
Decreased National Debt
Increased Tax Revenue
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does a debt to GDP ratio greater than 100% indicate?
The country's debt exceeds its total economic output
The country has no debt
The country's GDP is greater than its debt
The country is in a budget surplus
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a component of the national debt?
State and local government debts
Debt held by the public
Intragovernmental debt
Foreign holdings
6.
DRAG AND DROP QUESTION
1 min • 1 pt
Fiscal Policy is.... (a)
7.
DRAG AND DROP QUESTION
1 min • 1 pt
Monetary Policy is .... (a)
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