Podcast
Questions and Answers
Which factor can have a significant impact on an economy?
Which factor can have a significant impact on an economy?
- The economic decisions of households
- The investment decisions made by corporations
- The decisions made by governments
- All of the above (correct)
What is the main reason why the decisions made by governments can have an enormous impact on economies?
What is the main reason why the decisions made by governments can have an enormous impact on economies?
- Governments employ a significant proportion of the population (correct)
- Governments are the largest borrowers in world debt markets
- Governments have the power to influence monetary policy
- Governments have the power to influence fiscal policy
What does monetary policy refer to?
What does monetary policy refer to?
- Government's decisions about taxation and spending
- Central bank activities that influence the quantity of money and credit in an economy (correct)
- Government's decisions about borrowing and spending
- Government's decisions about employment and investment
What does fiscal policy refer to?
What does fiscal policy refer to?
Which sector of the economy is responsible for a significant proportion of spending?
Which sector of the economy is responsible for a significant proportion of spending?
What is one reason why individual corporations rarely affect large economies on their own?
What is one reason why individual corporations rarely affect large economies on their own?
What can lead to an increase in employment, investment, and profits?
What can lead to an increase in employment, investment, and profits?
What is one way in which central banks can implement monetary policy?
What is one way in which central banks can implement monetary policy?
What do governments express their policies through?
What do governments express their policies through?
What do governments normally employ a significant proportion of in most developed economies?
What do governments normally employ a significant proportion of in most developed economies?
Which one of the following best defines government revenue?
Which one of the following best defines government revenue?
What is the purpose of measuring the share of a country's output gathered by the government through taxes and related items?
What is the purpose of measuring the share of a country's output gathered by the government through taxes and related items?
Which of the following is NOT considered as part of government revenue?
Which of the following is NOT considered as part of government revenue?
What has been the trend for taxes on incomes and profits for OECD member countries since the mid-1990s?
What has been the trend for taxes on incomes and profits for OECD member countries since the mid-1990s?
Which country has the highest taxes on goods and services as a percentage of GDP?
Which country has the highest taxes on goods and services as a percentage of GDP?
What is the purpose of fiscal policy in a recession?
What is the purpose of fiscal policy in a recession?
What is the budget surplus or deficit?
What is the budget surplus or deficit?
What are automatic stabilizers in fiscal policy?
What are automatic stabilizers in fiscal policy?
How do automatic stabilizers reduce output fluctuations?
How do automatic stabilizers reduce output fluctuations?
What distinguishes automatic stabilizers from discretionary fiscal policies?
What distinguishes automatic stabilizers from discretionary fiscal policies?
Which of the following is NOT a goal of both monetary and fiscal policy?
Which of the following is NOT a goal of both monetary and fiscal policy?
What is the primary aim of fiscal policy?
What is the primary aim of fiscal policy?
Which of the following is NOT a way in which fiscal policy can influence aggregate demand?
Which of the following is NOT a way in which fiscal policy can influence aggregate demand?
In a recession with rising unemployment, why may cuts in income taxes not necessarily raise consumer spending?
In a recession with rising unemployment, why may cuts in income taxes not necessarily raise consumer spending?
Which camp of economists believes that fiscal policy can have powerful effects on aggregate demand, output, and employment?
Which camp of economists believes that fiscal policy can have powerful effects on aggregate demand, output, and employment?
Which camp of economists believes that monetary policy is a more effective tool for restraining or boosting inflationary pressures?
Which camp of economists believes that monetary policy is a more effective tool for restraining or boosting inflationary pressures?
What is the main focus of the discussion on fiscal policy?
What is the main focus of the discussion on fiscal policy?
What is the impact of new public spending on social goods and infrastructure on aggregate demand?
What is the impact of new public spending on social goods and infrastructure on aggregate demand?
Which of the following is NOT a challenge to achieving the overarching goal of monetary and fiscal policy?
Which of the following is NOT a challenge to achieving the overarching goal of monetary and fiscal policy?
What is the primary objective of both monetary and fiscal policy?
What is the primary objective of both monetary and fiscal policy?
