Chapter 16 Homework | ECON
2101 @ UNCC (22 questions
and answers)
What is fiscal policy?
Who is responsible for fiscal policy? - answer Fiscal policy can be described
as changes in government spending and taxes to achieve macroeconomic
policy objectives.
The federal government controls fiscal policy.
Which of the following statements is most accurate regarding fiscal policy
and monetary policy? - answer Fiscal policy includes changes in government
spending and taxes and is controlled by the federal government. Monetary
policy includes changes in the money supply and interest rates and is
controlled by the Federal Reserve. Both policies are intended to achieve
macroeconomic objectives.
What is the difference between federal purchases and federal expenditures?
Are federal purchases higher today than they were in 1960?
Are federal expenditures higher today than they were in 1960? - answer
Federal purchases require that the government receives a good or service in
return, whereas federal expenditures include transfer payments.
As a percentage of GDP, federal purchases have decreased since 1960.
, As a percentage of GDP, federal expenditures have increased since 1960.
In 2009, Congress and the president enacted "cash for clunkers" legislation
that paid people buying new cars up to $4,500 if they traded in an older, low
gas-mileage car.
Source: Justin Lahart, Trade-In Program Tunes Up Economic Engine," Wall
Street Journal, August 4, 2009.
Was this piece of legislation an example of fiscal policy? - answer Yes,
because the primary goal of the spending program was to stimulate the
national economy.
Some spending and taxes increase or decrease with the business cycle. This
event often has an effect on the economy that is similar to fiscal policy and is
called - answer automatic stabilizers.
After September 11, 2001, the federal government increased military
spending on wars in Iraq and Afghanistan. Is this increase in spending
considered fiscal policy? - answer No. The increase in defense spending after
that date was designed to achieve homeland security objectives.
_____________ are spending by the government on goods, services, and
factors of production. - answer Government Purchases
represent total government spending including goods, services, grants to
state and local governments, and transfer payments. - answer Government
Expenditures
Since the 1950s, total government expenditures, as a percentage of GDP,
have _______________ and total government purchases, as a percentage of
GDP, have _____________
2101 @ UNCC (22 questions
and answers)
What is fiscal policy?
Who is responsible for fiscal policy? - answer Fiscal policy can be described
as changes in government spending and taxes to achieve macroeconomic
policy objectives.
The federal government controls fiscal policy.
Which of the following statements is most accurate regarding fiscal policy
and monetary policy? - answer Fiscal policy includes changes in government
spending and taxes and is controlled by the federal government. Monetary
policy includes changes in the money supply and interest rates and is
controlled by the Federal Reserve. Both policies are intended to achieve
macroeconomic objectives.
What is the difference between federal purchases and federal expenditures?
Are federal purchases higher today than they were in 1960?
Are federal expenditures higher today than they were in 1960? - answer
Federal purchases require that the government receives a good or service in
return, whereas federal expenditures include transfer payments.
As a percentage of GDP, federal purchases have decreased since 1960.
, As a percentage of GDP, federal expenditures have increased since 1960.
In 2009, Congress and the president enacted "cash for clunkers" legislation
that paid people buying new cars up to $4,500 if they traded in an older, low
gas-mileage car.
Source: Justin Lahart, Trade-In Program Tunes Up Economic Engine," Wall
Street Journal, August 4, 2009.
Was this piece of legislation an example of fiscal policy? - answer Yes,
because the primary goal of the spending program was to stimulate the
national economy.
Some spending and taxes increase or decrease with the business cycle. This
event often has an effect on the economy that is similar to fiscal policy and is
called - answer automatic stabilizers.
After September 11, 2001, the federal government increased military
spending on wars in Iraq and Afghanistan. Is this increase in spending
considered fiscal policy? - answer No. The increase in defense spending after
that date was designed to achieve homeland security objectives.
_____________ are spending by the government on goods, services, and
factors of production. - answer Government Purchases
represent total government spending including goods, services, grants to
state and local governments, and transfer payments. - answer Government
Expenditures
Since the 1950s, total government expenditures, as a percentage of GDP,
have _______________ and total government purchases, as a percentage of
GDP, have _____________
