#1
Which of the following is a component of government expenditure?
Personal savings
Corporate profits
Defense spending
Household consumption
#2
What is the primary objective of expansionary fiscal policy?
To decrease government spending
To decrease taxes
To increase aggregate demand
To reduce inflation
#3
What does the term 'fiscal deficit' refer to?
Excess government spending over revenue
Excess government revenue over spending
Total government revenue
Total government debt
#4
Which of the following is not a type of fiscal policy?
Monetary policy
Expansionary policy
Contractionary policy
Neutral policy
#5
Which of the following is an example of an automatic stabilizer in fiscal policy?
Discretionary spending
Unemployment insurance
Corporate tax cuts
Infrastructure projects
#6
Which of the following is a tool of contractionary fiscal policy?
Increasing government spending
Decreasing taxes
Increasing taxes
Decreasing money supply
#7
What is the crowding-out effect in the context of fiscal policy?
Increase in private investment due to government spending
Decrease in private investment due to government borrowing
Increase in government spending due to private investment
Decrease in government spending due to crowdfunded projects
#8
In fiscal policy, what does 'discretionary spending' refer to?
Spending controlled by automatic stabilizers
Spending controlled by Congress through annual appropriations
Spending controlled by the Federal Reserve
Spending controlled by international agreements
#9
What is the 'Laffer curve' used to illustrate?
The relationship between government spending and economic growth
The relationship between tax rates and tax revenue
The relationship between inflation and unemployment
The relationship between interest rates and investment
#10
What is the term for the total amount of outstanding government debt?
Fiscal deficit
Monetary base
Public debt
Budget deficit
#11
Which of the following represents an automatic stabilizer in fiscal policy?
Unemployment benefits
Tax cuts
Infrastructure spending
Corporate subsidies
#12
What is the primary concern of Ricardian equivalence theory in fiscal policy?
The impact of government debt on interest rates
The effectiveness of fiscal stimulus packages
The relationship between tax cuts and government spending
The long-term effects of government borrowing on future tax burdens
#13
What is the term for the difference between total government revenue and total government expenditure?
Budget surplus
Fiscal deficit
National debt
Monetary policy
#14
What is the term for a situation in which the government spends more than it receives in revenue?
Budget surplus
Budget deficit
Fiscal equilibrium
Monetary expansion
#15
In fiscal policy, what does 'fiscal multiplier' refer to?
The ratio of government spending to tax revenue
The impact of fiscal policy changes on economic activity
The relationship between interest rates and investment
The measure of government debt relative to GDP