Which of the following is an appropriate fiscal policy response if the economy is in a state of rising inflation?   Contractionary fiscal policy by decreasing government spending and taxes. Expansionary fiscal policy by increasing government spending and taxes. Contractionary fiscal policy by decreasing government spending and increasing taxes. Expansionary fiscal policy by increasing government spending and lowering taxes.

Which of the following would not be considered an automatic stabilizer?   Question 13 options:   Income tax   Unemployment compensation   Education spending   Food stamps

Which of the following is a reason for using expansionary fiscal policy during a recession? a) reduce unemployment  b) All of the choices are correct  c) help the economy return to full employment  d) help increase GDP, job opportunities, and production in the economy e) increase employment

a) What are the three fiscal policy tools and how would each be used to counter a contractionary gap?   b) True or False and explain: Fiscal Policy is effective at reducing the duration of an economic contraction.   c) True or False and explain: Households always react to tax changes in a predictable manner.

What is the appropriate fiscal policy to lower the unemployment rate? Group of answer choices decrease the money supply increase the money supply increase taxes decrease government spending increase government spending do nothing

When the Federal government takes action to change taxes and spending to stimulate the economy such policy is:     A)  Discretionary   B)   Passive   C)  Automatic   D)  Nondiscretionary

When governments implement contractionary fiscal policy to increase taxes, which of the following is most likely to happen for the economy in the short run? Real GDP falls and price level rises Real GDP falls and price level falls Real GDP rises and price level rises Real GDP rises and price level falls.

To combat inflation, the federal government could apply which fiscal policy? decrease government spending sell government bonds decrease taxes raise interest rates

Explain how the implementation of this policy is related to the simple spending multiplier. Explain how the fiscal policy could solve the problem of unemployment.