Module 20

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Fiscal Policy - Froggy Jumps

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Sobre Froggy Jumps

12th grade

macroeconomics

fiscal policy

193 veces realizada

Creada por

Zachary Foust

Estados Unidos

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Froggy Jumps Module 20Versión en línea Fiscal Policy - Froggy Jumps por Zachary Foust 1 What is fiscal policy? a Changes in government spending and taxes b Changes in the quantity of money and interest rates c Changes in regulations and taxes 2 What type of fiscal policy increases aggregate demand? a Contractionary b Inflationary c Expansionary 3 What type of fiscal policy decreases aggregate demand? a Expansionary b Recessionary c Contractionary 4 How will an increase in government spending affect the price level and real GDP? a The price level will increase and real GDP will decrease. b The price level will increase and real GDP will increase. c The price level will decrease and real GDP will increase. 5 How will a decrease in taxes affect the price level and real GDP? a The price level will increase and real GDP will increase. b The price level will decrease and real GDP will increase. c The price level will decrease and real GDP will decrease. 6 How will an increase in transfers affect the price level and real GDP? a The price level will decrease and real GDP will increase. b The price level will increase and real GDP will increase. c The price level will increase and real GDP will decrease. 7 How will a decrease in government spending affect the price level and real GDP? a The price level will increase and real GDP will increase. b The price level will decrease and real GDP will increase. c The price level will decrease and real GDP will decrease. 8 How will an increase in taxes affect the price level and real GDP? a The price level will increase and real GDP will decrease. b The price level will decrease and real GDP will decrease. c The price level will increase and real GDP will increase. 9 How will a decrease in transfers affect the price level and real GDP? a The price level will decrease and real GDP will decrease. b The price level will increase and real GDP will decrease. c The price level will increase and real GDP will increase. 10 How will an increase in government spending affect unemployment? a Unemployment will decrease. b Unemployment will increase. c Unemployment will remain unchanged. 11 How will a decrease in taxes affect unemployment? a Unemployment will increase. b Unemployment will decrease. c Unemployment will remain unchanged. 12 How will an increase in transfers affect unemployment? a Unemployment will remain unchanged. b Unemployment will increase. c Unemployment will decrease. 13 How will a decrease in government spending affect unemployment? a Unemployment will increase. b Unemployment will decrease. c Unemployment will remain unchanged. 14 How will an increase in taxes affect unemployment? a Unemployment will decrease. b Unemployment will increase. c Unemployment will remain unchanged. 15 How will a decrease in transfers affect unemployment? a Unemployment will remain unchanged. b Unemployment will decrease. c Unemployment will increase. 16 Which of the following policies would most likely correct a recessionary gap? a An increase in taxes b An increase in government spending c A decrease in transfers 17 Which of the following policies would most likely correct an inflationary gap? a An increase in taxes b An increase in government spending c An increase in transfers 18 Which of the following policies is best suited for an economy with a natural rate of unemployment equal to 5 percent and an actual rate of unemployment equal to 2 percent? a A decrease in taxes b A decrease in government spending c An increase in transfers 19 Which of the following changes is the most difficult to offset with fiscal policy? a A positive demand shock b A negative supply shock c A negative demand shock 20 Why do time lags limit the effectiveness of fiscal policy? a Over time, the economy will not correct itself. b By the time that the government implements a fiscal policy, the situation may change. c Eventually, workers will give up looking for jobs.

Froggy Jumps

Module 20Versión en línea

Fiscal Policy - Froggy Jumps

por Zachary Foust

What is fiscal policy?

Changes in government spending and taxes

Changes in the quantity of money and interest rates

Changes in regulations and taxes

What type of fiscal policy increases aggregate demand?

Contractionary

Inflationary

Expansionary

What type of fiscal policy decreases aggregate demand?

Expansionary

Recessionary

Contractionary