Question:

Fiscal Policy includes:

A.

expenditure policy

B.

tax policy

C.

both a and b

D.

neither a nor b.

Answer» c. both a and b

Question:

Fiscal Policy refers to policy towards:

A.

public revenue

B.

public expenditure

C.

public debt

D.

all of the above

Answer» d. all of the above

Question:

When more workers are engaged in a work than actually required to work, it is called

A.

voluntary unemployment

B.

involuntary unemployment

C.

disguised unemployment

D.

frictional unemployment

Answer» c. disguised unemployment

Question:

Peaks and troughs of the business cycle are known collectively as:

A.

volatility.

B.

turning points.

C.

equilibrium points.

D.

real business cycle events.

Answer» b. turning points.

Question:

The term Stagflation is coined by:

A.

samuelson

B.

iain macleod

C.

keynes

D.

none

Answer» b. iain macleod

Question:

Economists use the term shocks to mean:

A.

unexpected government actions that affect the economy

B.

typically unpredictable forces that have major impacts on the economy

C.

sudden rises in oil prices

D.

the business cycle.

Answer» b. typically unpredictable forces that have major impacts on the economy

Question:

Cost of living increases when business cycle is            

A.

expanding

B.

contracting

C.

at peak

D.

at lowest point

Answer» c. at peak

Question:

The lowest level of economic activity is called            

A.

contraction

B.

trough

C.

recovery

D.

none of the above

Answer» b. trough

Question:

According to the monetarists, inflation is caused by

A.

supply shocks.

B.

expansionary fiscal policies.

C.

expansionary monetary policies.

D.

rising prices.

Answer» c. expansionary monetary policies.

Question:

The tax cut shift the IS curve to the:

A.

right

B.

left

C.

no change

D.

any of these.

Answer» a. right