Podcast
Questions and Answers
How does fiscal policy primarily affect the aggregate demand?
How does fiscal policy primarily affect the aggregate demand?
- By directly shifting the aggregate-demand curve (correct)
- By influencing saving and investment in the long run
- By decreasing the money supply
- By increasing the interest rate
What does fiscal policy refer to?
What does fiscal policy refer to?
- Government's choices regarding government purchases and taxes (correct)
- Government's control over money supply and interest rates
- Government's management of inflation and unemployment
- Government's influence on the exchange rate
What is the main effect of changes in government purchases on aggregate demand?
What is the main effect of changes in government purchases on aggregate demand?
- It influences saving and investment in the long run
- It increases the interest rate
- It shifts the aggregate-demand curve directly (correct)
- It decreases the aggregate demand
What is the primary impact of fiscal policy on aggregate demand in the short run?
What is the primary impact of fiscal policy on aggregate demand in the short run?
How does fiscal policy influence saving, investment, and growth in the long run?
How does fiscal policy influence saving, investment, and growth in the long run?
What is the multiplier effect in the context of government purchases?
What is the multiplier effect in the context of government purchases?
What happens to investment spending when an increase in government purchases causes the interest rate to rise?
What happens to investment spending when an increase in government purchases causes the interest rate to rise?
What is the formula for the spending multiplier if the marginal propensity to consume (MPC) is 3/4?
What is the formula for the spending multiplier if the marginal propensity to consume (MPC) is 3/4?
What is the crowding-out effect in the context of fiscal policy?
What is the crowding-out effect in the context of fiscal policy?
How does a larger marginal propensity to consume (MPC) affect the multiplier in an economy?
How does a larger marginal propensity to consume (MPC) affect the multiplier in an economy?
What is the measure of economic growth?
What is the measure of economic growth?
What does the Human Development Index measure?
What does the Human Development Index measure?
What does the Value Added approach to GDP measure?
What does the Value Added approach to GDP measure?
What is a sign of recession or economic downturn?
What is a sign of recession or economic downturn?
What does the Sustainable Development Goals (2015-2030) aim to achieve?
What does the Sustainable Development Goals (2015-2030) aim to achieve?
Which type of assessment counts for the highest percentage in the course?
Which type of assessment counts for the highest percentage in the course?
When is the group project due?
When is the group project due?
What does GDP stand for?
What does GDP stand for?
What is the primary importance of economic growth to economic development?
What is the primary importance of economic growth to economic development?
Which approach is used to compute GDP by accounting for final goods and services in local currency values within a 1-year accounting period?
Which approach is used to compute GDP by accounting for final goods and services in local currency values within a 1-year accounting period?
