Contractionary fiscal policy quizlet
[DOC File]AP ECONOMICS CHAPTER 16 STUDY GUIDE - Bowie High …
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A) a tight monetary policy. B) a contractionary fiscal policy. C) an increase in aggregate demand . D) an increase in aggregate supply . 21. Refer to the above graph. The economy is at point B2, and aggregate demand increases. In the short run, the economy will: A) stay at point B2. B) move to point C2 and in the long run to B3.
[DOC File]AP ECONOMICS CHAPTER 19 STUDY GUIDE - Bowie High …
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A) expansionary fiscal policy and a tight money policy. B) contractionary fiscal policy and a tight money policy. C) expansionary fiscal policy and an easy money policy. D) contractionary fiscal policy and an easy money policy. 28. Crowding-out results from: A) an increase in the supply of money and a decrease in the velocity of money.
[DOC File]Unisa Study Notes
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Fiscal policy is the use of the spending and taxing functions of government. An expansionary fiscal policy is one that increases aggregate demand by lowering taxes and/or increasing government spending. Similarly, a contractionary fiscal policy is one that reduces aggregate demand by increasing taxes and/or decreasing government spending.
Fiscal Policy Practice Test Questions
Practice FP questions for the test. Please refer to the following chart to answer question number 1. Federal Reserve Tools Fiscal Policy Tools Discount rate taxing Reserve Requirement spending borrowing One tool is missing from the Federal Reserve’s list of tools.
FISCAL POLICY WORKSHEET - OnCourse Systems
nondiscretionary fiscal policy. the full-employment budget. crowding out. A balanced-budget amendment that required the Federal government to balance its budget each year would be. expansionary at a time when fiscal policy should be contractionary. contractionary at a time when fiscal policy should be expansionary
[DOC File]CHAPTER 17: TEST BANK
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expansionary monetary policy. contractionary monetary policy. expansionary fiscal policy. contractionary fiscal policy. Capital flight occurs when funds in LDCs are: used to purchase luxury goods. used to invest in factories and equipment. used to invest in foreign countries. saved at home rather than in banks.
[DOCX File]Explanation
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A contractionary fiscal policy, for instance a decrease in government spending, causes a lower deficit. In the IS-LM model the IS curve shifts to the left and the level of output falls. By implementing an expansionary monetary policy through increasing the money supply, the LM curve shifts to the right and the level of output returns to its ...
[DOC File]Chapter 01 Economics: The Study of Opportunity Cost
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Contractionary monetary policy would shift the A. aggregate demand curve to the right. B. aggregate demand curve to the left. C. aggregate supply curve up and to the left. D. aggregate supply curve down and to the right. From the early 1980's through 2000 the Federal Reserve's primary focus was on A. ensuring rapid growth.
[DOC File]الصفحات الشخصية
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A) expansionary fiscal policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) contractionary monetary policy. Answer: B. 16) According to the ʺsimpleʺ Keynesian view, the aggregate supply curve is. A) vertical until it reaches full capacity and then becomes horizontal. B) downward sloping over all levels of output.
[DOC File]Multiple choice questions
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c. use fiscal policy to influence GDP. d. loan money to most of LDC commercial banks. 4. _____ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods. a. Incomes policy. b. Moral …
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