20. Fiscal Policy

Which of the following combinations of fiscal and monetary policies is most likely to correct a severe recession?

Which of the following will most likely result from a decrease in government spending?

Which of the following is a possible limitation of fiscal policy?

Suppose that the federal government wants to address high levels of unemployment in the economy using fiscal policy. Which of the following actions would be most appropriate?

Which of the following combinations of policies is most effective in reducing demand-pull inflation?

Which of the following pairs of operations best fit with fiscal policy?

Smoothing the peaks and troughs of the business cycle with fiscal policy is known as:

During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:

Which of the following best describes an automatic stabilizer in fiscal policy?

Which of the following policies represents an automatic stabilizer with respect to fiscal policy?

Which of the following best describes a critical dilemma associated with timing lags when implementing fiscal policy?

Which of the following actions would be consistent with an attempt by the Federal Reserve to reduce inflation?

Which of the following is primarily responsible for controlling fiscal policy in the United States?

Which of the following combinations of monetary and fiscal policy is most likely to reduce unemployment in an economy?

How would the U.S. government most likely respond to a slump in the economy using fiscal policy?