Question

Short-run contractionary fiscal policy would result in:

AD moving to the right.

AS moving to the right.

AD moving to the left.

AS moving to the left.

Stimulus checks and tax changes are all examples of

Monetary Policy

Fiscal Policy

Contractionary Policy

Expansionary Policy

If the federal government decide a contractionary fiscal policy is ​necessary, what changes should they make in government spending or​ taxes?

The federal government should enact policies that decrease government spending and decrease taxes.

The federal government should enact policies that increase government spending and decrease taxes.

The federal government should enact policies that decrease government spending and increase taxes.

The federal government should enact policies that increase government spending and increase taxes.

The government is pursuing a contractionary policy if it:

decreases its spending and increases its tax revenues.

increases its spending or increases its tax revenues.

decreases its spending or reduces its tax revenues.

increases its spending and/or reduces its tax revenues.

When the government attempts to use stabilization policy, it can sometimes end up intensifying the business cycle instead of smoothing it due to

recognition lag

implementation lag

response lag

All of the above.

Short-run expansionary fiscal policy would result in:

AD moving to the right.

AS moving to the right.

AD moving to the left.

AS moving to the left.

What is a contractionary fiscal​ policy?

Contractionary fiscal policy includes increasing government spending and decreasing taxes to decrease aggregate demand.

Contractionary fiscal policy includes decreasing government spending and taxes to decrease aggregate demand.

Contractionary fiscal policy includes increasing government spending and taxes to decrease aggregate demand.

Contractionary fiscal policy includes decreasing government spending and increasing taxes to decrease aggregate demand.

Answer 1

1) Short-run contractionary fiscal policy would result in:

AD moving to the left.

2) Stimulus checks and tax changes are all examples of

Fiscal Policy

3) The federal government should enact policies that decrease government spending and increase taxes.

4) decreases its spending and increases its tax revenues

5) All of the above

6) AD moving to the right.

7) Contractionary fiscal policy includes decreasing government spending and increasing taxes to decrease aggregate demand.