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6 Written questions

6 Multiple choice questions

  1. Wealth
    Borrowing
    Expectations
    Real interest rates
  2. Change in savings/Disposable income
  3. leftward shift in the AS curve
  4. Consumption/Disposable income
  5. Operating costs
    Business taxes
    Technological changes
    Stock of capital goods
    Planned inventory changes
    Expectations
  6. an increase in taxes or decrease in government spending or both, so that the net effect on aggregate demand is a decrease in net government spending

5 True/False questions

  1. Expansionary fiscal policydeliberate manipulation of taxes and government spending by the Congress to alter real domestic output and employment, to control inflation, and to stimulate economic growth during a particular period of time

          

  2. discretionary fiscal policydeliberate manipulation of taxes and government spending by the Congress to alter real domestic output and employment, to control inflation, and to stimulate economic growth during a particular period of time

          

  3. nondiscretionary or built-in stabilization policydeliberate manipulation of taxes and government spending by the Congress to alter real domestic output and employment, to control inflation, and to stimulate economic growth during a particular period of time

          

  4. Marginal Propensity to ConsumeChange in consumption/Disposable income

          

  5. Average Propensity to SaveConsumption/Disposable income