An economist who favored expanded government would recommend: tax cuts during recession and tax increases during inflation.
Question:
An economist who favored expanded government would recommend:
tax cuts during recession and tax increases during inflation. | |
tax increases during recession and tax cuts during inflation. | |
tax cuts during recession and reductions in government spending during inflation. | |
increases in government spending during recession and tax increases during inflation. |
When current government expenditures exceed current tax revenues and the economy is achieving full employment:
the cyclically adjusted budget has a surplus. | |
fiscal policy is contractionary. | |
the cyclically adjusted budget has a deficit. | |
the cyclically adjusted budget has neither a deficit nor a surplus. |
An appropriate fiscal policy for severe demand-pull inflation is:
a tax rate increase. | |
a reduction in interest rates. | |
an increase in government spending. | |
depreciation of the dollar. |
Suppose the government cuts taxes to keep the economy's cyclically adjusted budget in balance when the economy is expanding. The government is engaging in a(n):
neutral fiscal policy. | |
low-interest-rate policy. | |
expansionary fiscal policy. | |
contractionary fiscal policy. |
The public debt is held as:
Treasury bills, Treasury notes, Treasury bonds, and U.S. savings bonds. | |
U.S. securities, corporate bonds, and common stock. | |
Federal Reserve Notes. | |
U.S. gold certificates. |