問題一覧
1
The federal government tends to pursue _____ policy and the state and local governments tend to pursue _____ policy.
countercyclical; procyclical
2
Suppose the government increases taxes by a lump sum of $500 million. If the marginal propensity to consume is 0.8, how much would the equilibrium level of output decrease according to the macroeconomic model presented in the text?
$2,000 million
3
Which one of the following statements is FALSE?
Total federal government outlays in the United States have generally declined as a percentage of GDP in recent decades.
4
As described in the text, what is the primary belief behind supply-side economics?
Tax cuts will encourage more work and investment, leading to higher output and tax revenues.
5
Suppose that the marginal propensity to consume is 0.9. What is the tax multiplier for a lump sum tax in this case?
-9
6
If the Keynesian multiplier were 1.4, then a $1 trillion increase in government spending would…
increase GDP by $1.4 trillion.
7
A cyclical deficit can result from…
automatic stabilizers.
8
A tax system that taxes higher-income individuals at higher rates is called ___________; while a system where all individuals are taxed at the same rate is called _____________.
progressive; proportional
9
What is the mechanism by which an increase in government spending or a tax cut stimulates the economy?
All of the above
10
Net taxes are equal to …
taxes minus transfer payments.
11
The process by which certain government expenditures induce private investment is called…
crowding in.
12
Which one of the following statements is TRUE?
The use of fiscal policy for “fine-tuning” the economy was discredited in the 1970s due to problems with inflation and time-lags.
13
In recessions, tax revenues tend to decline and transfer payments like unemployment insurance and food stamps tend to increase, so these programs...
are automatic stabilizers.
14
The PAYGO (pay as you go) system involved:
slight increase in tax rates, and requirement to match spending increases with either tax increases or declines in other spending.
15
Which one of the following OECD countries had the highest debt-GDP ratio in 2020?
Japan
16
Since the Great Recession, the total indebtedness as a percent of GDP in the U.S. has:
declined as the economic downturn forced households to reduce their debt levels.
17
The government deficit is a _______ variable and its debt is a _______ variable.
flow; stock
18
The government debt _________________ when the government runs a deficit and _________________ when it runs a surplus.
rises; falls
19
Which of the following is NOT a part of possible deficit reduction plans?
Reducing Social Security tax rates
20
According to the analysis conducted by the Congressional Budget Office one year into the COVID-19 pandemic,
e. Both b and c.
21
Which one of the following statements about U.S. debt is FALSE?
Foreigners own two-thirds of U.S. government debt.
22
If the US national debt was $19 trillion at the beginning of fiscal year 2016, and the deficit was $ 0.5 trillion dollars that year, what was the national debt at the beginning of fiscal year 2017?
$19.5 trillion
23
Which one of the following groups owns the largest share of gross federal debt?
Federal Reserve and the US federal government holdings
24
A debt ceiling
is a limit on the size of the gross federal debt.
25
Which of the following statements is FALSE?
Government surplus helps lower the deficit.