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CSET Business Subtest II (176): Practice & Study Guide  /  Business Courses

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CSET Business - Macroeconomics: Fiscal and Monetary Policy Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which of the following statements best describes the use of fiscal policy during a recession?

Question 2 2. Which of the following statements is FALSE regarding the government's fiscal policy toolkit?

Question 3 3. The central idea of supply-side economics is that certain types of tax cuts will increase:

Question 4 4. According to supply-side economists, how are taxes and economic growth related?

Question 5 5. What are the primary goals of fiscal and monetary policy?

Page 2

Question 6 6. Supply-side economic policies are sometimes referred to as:

Question 7 7. Which of the following policies would be supported by a supply-side economist?

Question 8 8. How would a government most likely change its tax rates during a recession? Why?

Question 9 9. Increasing government spending will likely lead to all of the following, EXCEPT:

Question 10 10. According to Keynesian economists, why do recessions occur?

Page 3

Question 11 11. Which of the following policies is a component of supply-side fiscal policy?

Question 12 12. What does the word 'fiscal' refer to when discussing fiscal policy?

Question 13 13. Fiscal policy involves the use of _____ to influence _____.

Question 14 14. Which of the following is a possible negative consequence of decreased taxes and increased government spending?

Question 15 15. _____ fiscal policy addresses a _____ economy, while _____ fiscal policy addresses an _____ economy.

Page 4

Question 16 16. The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to Classical economists, is for the government to do which of the following?

Question 17 17. When the Federal Reserve lowers the discount rate, what will happen?

Question 18 18. The economy has entered a recession with high unemployment. The government will use its fiscal policy toolkit to do what?

Question 19 19. Which of the following is true about fiscal policy?

Question 20 20. All of the following are examples of fiscal policy to lower unemployment, EXCEPT:

Page 5

Question 21 21. Increasing individual tax rates through fiscal policy will most likely have which effect on the economy?

Question 22 22. What is fiscal policy?

Question 23 23. When the economy is growing too slowly (recession) or too quickly (high inflation), the two approaches the government can use, according to economists, include which of the following?

Question 24 24. Decreasing personal tax rates through fiscal policy will most likely result in:

Question 25 25. What are the three main tools or methods the Federal Reserve uses in implementing monetary policy?

CSET Business - Macroeconomics: Fiscal and Monetary Policy Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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