11) A Constitutional amendment requiring that the federal government budget be balanced annually would have
A) an automatic stabilizing impact upon the economy.
B) an automatic destabilizing impact upon the economy.
C) overall neutral impact upon the economy.
D) overall positive impact upon the economy during any stage of a business cycle.
12) While targeting the deficit, which of the following is likely to occur after a positive aggregate demand shock?
A) AD↑ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↓ ⇒ Y↓
B) AD↑ ⇒ Y↓ ⇒ T↓ ⇒ deficit↓ ⇒ G↓ ⇒ AD↓ ⇒ Y↓
C) AD↓ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↓ ⇒ Y↑
D) AD↑ ⇒ Y↑ ⇒ T↑ ⇒ deficit↓ ⇒ G↑ ⇒ AD↑ ⇒ Y↑
13) While targeting the deficit, which of the following is likely to occur after a negative aggregate demand shock?
A) AD↓ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↓ ⇒ Y↓
B) AD↓ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↑ ⇒ AD↑ ⇒ Y↑
C) AD↓ ⇒ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↑ ⇒ Y↑
D) AD↓ ⇒ Y↓ ⇒ T↑ ⇒ deficit↑ ⇒ G↑ ⇒ AD↓ ⇒ Y↓
14) Without targeting the deficit, which of the following is likely to occur after a negative aggregate demand shock?
A) Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↑ ⇒ Y↑
B) Y↓ ⇒ T↓ ⇒ deficit↑
C) Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↓ ⇒ Y↓
D) Y↓ ⇒ T↓ ⇒ deficit↓
15) The adverse impact of a negative aggregate demand shock is reduced when the government does not target the deficit because
A) targeting the deficit causes further negative aggregate demand shocks.
B) negative aggregate demand shocks do not affect the deficit.
C) the economy is always producing potential output.
D) not targeting the deficit causes positive aggregate demand shocks.
16) The economic impact of ________ during expansionary periods is to moderate growth.
A) implementation lags
B) positive demand shocks
C) automatic stabilizers
D) tax cuts
17) The economic impact of automatic stabilizers during recessionary periods is to
A) have no impact on the recession.
B) moderate the recession.
C) make the recession worse.
D) increase taxes.
18) The economic impact of automatic stabilizers during inflationary periods is to
A) accelerate inflationary pressures.
B) increase exports.
C) have no impact on inflation.
D) moderate inflationary pressures.
19) The economic impact of ________ during recessionary periods is to decrease taxes.
A) negative demand shocks
B) automatic stabilizers
C) recognition lags
D) increasing the reserve rate
20) The economic impact of automatic stabilizers during recessionary periods is to
A) increase unemployment.
B) increase taxes.
C) increase government spending.
D) decrease money growth.
21) Government spending rising during a recession is an example of
A) an automatic destabilizer.
B) an automatic stabilizer.
C) discretionary economic policy.
D) policy lags.
22) An example of automatic stabilizers is
A) government spending rising in a recession.
B) taxes rising in a recession.
C) taxes falling in an expansion.
D) all of the above
23) An example of automatic stabilizers is
A) government spending rising during an expansion.
B) government spending falling during a recession.
C) taxes rising in an expansion.
D) deficit targeting.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more