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(TCO 6) Discretionary fiscal policy refers to

  • ECON 312 Principles of Economics Week 5 Quiz Answers

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  1. (TCO 6) Suppose that the economy is in the midst of a recession. Which of the following policies would most likely end the recession and stimulate output growth?
  2. (TCO 6) The crowding-out effect of expansionary fiscal policy suggests that
  3. (TCO 5) Which of the following would not shift the aggregate supply curve?
  4. (TCO 6) In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. We would expect this to
  5. (TCO 6) The MPC can be defined as that fraction of a
  6. (TCO 6) The size of the MPC is assumed to be
  7. (TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD3?  
  8. (TCO 6) The multiplier is
  9. (TCO 5) The American Recovery and Reinvestment Act of 2009 was implemented primarily to
  10. (TCO 5) What effect would each of the following have on aggregate demand or aggregate 
  11. (TCO 6) Why do some economists believe that tax cuts are critical to help revive an economy experiencing a recession?

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