Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Winter 2023 » Week 5 Reading Quiz Chs. 15 and 17
Below are the questions for the exam with the choices of answers:
Question #1
A Decreasing government spending and/or increasing taxes
B By only increasing taxes
C Lowering taxes and raising government spending
D Increasing government spending and/or decreasing taxes
Question #2
A Expansionary monetary policy
B Contractionary monetary policy
C Expansionary fiscal policy
D Contractionary fiscal policy
Question #3
A The government is receiving more money in taxes than it spends in a year.
B The government is spending more money than it receives in taxes for a given year.
C The unemployment rate is declining.
D The rate of inflation is declining.
Question #4
A State Legislatures
B Congress
C The President
D The President and Congress
Question #5
A Private consumption
B Foreign firms dominating the domestic economy
C Government borrowing and spending
D Excessive importation of goods and services
Question #6
A Decreasing in government spending and increasing in taxes
B Increasing investment and increasing government spending
C Increasing consumption and decreasing taxes
D Decreasing in government spending and decreasing taxes
Question #7
A Increase taxes, increase spending, and/or increase transfer payments
B Decrease taxes, increase transfer payments, and/or decrease government spending
C Increase taxes, decrease transfer payments, and/or decrease government spending.
D Decrease taxes, decrease government spending, and/or decrease transfer payments
Question #8
A Automatic stabilizers; current retirees using funds from current contributions
B Progressive tax; to current retirees from funds from their past contributions
C Legislative lag; deducted from the higher-income groups to pay the lower income groups
D Contractionary fiscal policy; current older workers from funds deducted from younger workers
Question #9
A One argument against a required balanced federal budget is that the government does not have macroeconomic responsibilities
B One argument against a required balanced federal budget is that sometimes it is necessary or beneficial to run large budget deficits in the short-run.
C One argument against a required balanced federal budget is that this mandate cannot be added to the Constitution, and therefore, could not be enforced.
D One argument in support of a required balanced federal budget maintains that having a balanced budget each year would make the impacts of economic recessions less severe.
Question #10
A Food Stamps
B Unemployment Insurance
C Stimulus Package
D Personal Income Tax
Question #11
A Neither monetary or fiscal policy
B Monetary but not fiscal policy
C Fiscal but not monetary policy
D Both monetary and fiscal policy
Question #12
A Decrease aggregate demand
B Increase aggregate demand
C Decrease aggregate supply
D Increase aggregate supply
Question #13
A It decreases
B It doubles
C It increases
D There is no change
Question #14
A $400 million
B $200 billion
C $400 billion
D $200 million
Question #15
A The head of the Treasury also chairs the Federal Reserve Board
B There are 12 regional Federal Reserve Banks
C The FOMC is smaller in size than the Federal Reserve Board
D There are 14 members of the Federal Reserve Board
Question #16
A The president
B U. S. Congress
C Member banks
D Board of Governors of the Fed
Question #17
A Issue more loans
B Raise interest rates
C Sell off government bonds
Question #18
A Reserve requirements
B Open market operations
C Discount rate
D Federal funds rate
Question #19
A Higher interest rates and lower GDP
B Lower interest rates and lower GDP.
C Lower interest rates and higher GDP
D Higher interest rates and higher GDP
Question #20
A Lending to nonbanks
B Increasing the discount rate
C Purchasing government securities
D Selling government securities