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4 multiple choice questions need to be answered right now as soon as i post this

Question 7

Assuming no effects on aggregate supply, if the government decreases government spending and increases taxes in an attempt to reduce the federal budget deficit, aggregate demand will shift to the ____, the price level will either remain constant or ____, and the level of real GDP will ____.

Answer

A.

left; increase; increase.

B.

left; increase; decrease.

C.

left; decrease; increase.

D.

left; decrease; decrease.

E.

right; decrease; decrease.

Question 8

A(n) ____) in government spending or a(n)____ in taxes lowers the level of expenditures at every price and shifts the aggregate demand curve to the ____.

Answer

A.

decrease; increase; right.

B.

decrease; increase; left.

C.

increase; decrease; right.

D.

increase; decrease; left.

E.

decrease; decrease; left.

Question 9

Assume an economy has automatic stabilizers in place that include a progressive income tax and a transfer payment system. Then in a period of high economic growth and high inflation, we would expect:

Answer

A.

tax revenues to fall and unemployment compensation to rise.

B.

average tax rates and welfare payments to decline.

C.

the national debt to become larger.

D.

average tax rates and government revenues to rise.

E.

government spending on social security benefits to rise.

Question 10

Total unemployment compensation increases during recessions with no change in benefit rates. This is an example of:

Answer

A.

balanced budget policy.

B.

the crowding out effect.

C.

automatic stabilizers.

D.

the concept of Recardian Equivalence.

E.

regressive taxation.

Beceriler: Muhasebe, Finans, Intuit QuickBooks , Bordro

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