QUESTION 1 What are fiscal policies? Methods by which government adjust its spending levels

Question: QUESTION 1 What are fiscal policies? Methods by which government adjust its spending levels and tax rates Methods by which government adjust its money supply rates Methods by which government adjust its inflation rates Methods by which government adjust its unemployment rates QUESTION 2 What is the federal budget? O “A summary of the government proposals forSee the answerSee the answerSee the answer done loadingOnly 50 minutes, please help

Show transcribed image text1. 1 2. 1 3. 3 4. 2…View the full answerTranscribed image text: QUESTION 1 What are fiscal policies? Methods by which government adjust its spending levels and tax rates Methods by which government adjust its money supply rates Methods by which government adjust its inflation rates Methods by which government adjust its unemployment rates QUESTION 2 What is the federal budget? O “A summary of the government proposals for spending, taxes and deficits” A summary of the government proposals for increasing inflation rates A summary of the government proposals for decreasing inflation rates A summary of the government proposals for changing savings rates QUESTION 3 What is a balanced budget? Tax revenues are greater than government spending Tax revenues are equal to government spending Tax revenues are less than government spending None of the above QUESTION 4 What is a budget surplus? Tax revenues are equal to government spending Tax revenues are greater than government spending Tax revenues are less than government spending None of the above QUESTIONS When does the budget cycle begins? After fiscal year begins During fiscal year Before fiscal year begins Two years before fiscal year begins QUESTION 6 What year was the federal debt (as percentage of GDP) the highest? 1970 “1,945” “2,000” “1,965” QUESTION 7 What is federal debt? Total amount of outstanding assets owed to the federal government Total amount of outstanding loans owed by the state government Total amount of outstanding loans owed by the local government Total amount of outstanding loans owed by the federal government QUESTION 8 According to 30.9 in the year 2000 is the total spending higher or lower than tax receipts? Higher Lower QUESTION 9 What does the Debt to GDP ratio analyze? Total amount of outstanding loans the government owes minus nominal GDP Total amount of outstanding loans the government owes divided by nominal GDP Total amount of outstanding loans the government owes multiplied by nominal GDP Total amount of outstanding loans the government owes divided by nominal inflation rates QUESTION 10 “If there is an increase in government purchases, where does the AD curve shift?” O Right Left No effect O All of the above QUESTION 11 “If there is a decrease in government purchases, where does the AD curve shift?” Right Left No effect O All of the above QUESTION 12 “If there is a tax increase and individual have less income to spend, what happens to the AD curve?” Shifts to the left Shifts to the right No change Either shift to the right or left QUESTION 13 What is a countercyclical policy? A policy designated to offset changes in the circular flow model fluctuations A policy designated to offset changes in the business cycle fluctuations A policy designated to avoid changes in the business cycle fluctuations A policy designated to avoid changes in the circular flow model fluctuations QUESTION 14 A well timed countercyclical fiscal policy prevents a Recovery Expansion Recession Peak QUESTION 15 What is a discretionary fiscal policy? Changes in tax or spending policy required administrative action by the federal reserve Changes in monetary policy required administrative action by the president or congress Changes in tax or spending policy required administrative action by the president or congress Changes in monetary policy required legislative action by the president or congress QUESTION 16 What are automatic stabilizers? Automatic tax and spending changes that occurs during changes in real GDP Unemployment compensation Welfare payments O All of the above QUESTION 17 What is a structural surplus? The surplus amount if real GDP would surpass potential GDP The deficit amount if real GDP equal potential GDP The surplus amount if real GDP equal potential GDP The deficit amount if real GDP would be lower than potential GDP QUESTION 18 “If AD shifts to the left, it means that the following event occurred:” Decrease in government expenditures Increase in government expenditures Decreases in tax rates None of the above