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Economic and Fiscal Policy: Help and Review 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 is an example of an efficiency goal?

Question 2 2. In which of the following scenarios would it be a good idea for the government to implement a deflationary fiscal policy?

Question 3 3. _____ reduce the amount of taxable income a business has to report.

Question 4 4. What happens to real GDP, prices and unemployment at the peak of a business cycle?

Question 5 5. All of the following laws were meant to protect workers except

Page 2

Question 6 6. All of the following are ways that the Federal Reserve can affect the money supply except _____.

Question 7 7. The Federal Reserve has noticed that expenditures are decreasing and that the number of loans requested has decreased significantly. What will they aim to do to increase the number of loan requests?

Question 8 8. For three quarters in a row, economic growth increased by 3%, 5% and 7%. As it was close to the election, the government did not try to stabilize the growth. In the last quarter of the year, the economy drastically fell by 5%. Which of the following best describes such an occurrence?

Question 9 9. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 10 10. According to this chart, what was the unemployment rate during the peak of the business cycle?

Page 3

Question 11 11. The federal government's use of taxation and spending policies to affect overall business activity is called _____.

Question 12 12. Which of the following is NOT a goal of the U.S. government that can be accomplished by fiscal policy?

Question 13 13. You are an adviser to the Federal Reserve. Select which of the following is a goal that monetary policy should NOT strive towards nor have influence over?

Question 14 14. In general, which of the following is NOT correct concerning how politics and regulation intersect?

Question 15 15. The Federal Reserve controls the growth rate of the money supply through _____.

Page 4

Question 16 16. Which of the following are the two phases and the two turning points of the business cycle?

Question 17 17. Overregulation is usually a result of the government wishing to promote _____.

Question 18 18. The government's restriction and control over business practices is called _____.

Question 19 19. Which of the following should the government use when it wants to increase demand for goods?

Question 20 20. How would the Federal Reserve implement an expansionary monetary policy?

Page 5

Question 21 21. What happens to economic output as measured by GDP during a recession?

Question 22 22. What is a government MOST likely to do to protect the interests of agricultural businesses?

Question 23 23. The rate banks pay to borrow money from the Fed is called the _____ rate.

Question 24 24. Jane is a presidential adviser in the time of the 2008 Global Economic Crisis. The president is asking her if he should use fiscal policy in an attempt to combat the effects of the crisis. Why does she likely tell him yes?

Question 25 25. Which of the following is NOT true about how the government protects the U.S. economy?

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Question 26 26. Sunshine Solar receives a $2,000 reduction on its federal taxes for each solar-energy installation it performs. This is an example of a _____.

Question 27 27. If the government wants to pull the country out of a period of heavy recession they should do all of the following EXCEPT:

Question 28 28. The method of affecting the money supply that is used the least by the Fed is

Question 29 29. All of the following are ways that the U.S. government promotes the economic interests of businesses, EXCEPT:

Question 30 30. Which of the following is an example of an equity goal?

Economic and Fiscal Policy: Help and Review 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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