#1
Which of the following is a tool used by governments to control inflation?
Expansionary monetary policy
Contractionary fiscal policy
Expansionary fiscal policy
Contractionary monetary policy
#2
Which of the following is a characteristic of a fiscal policy?
Controlled by the central bank
Involves changes in tax rates and government spending
Involves changes in interest rates
Involves changes in money supply
#3
What is the main tool used by central banks to implement monetary policy?
Interest rates
Tax rates
Government spending
Exchange rates
#4
In which market structure does a single firm dominate the market and set prices?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#5
What is the name for the total market value of all final goods and services produced within a country in a given period of time?
Gross National Product (GNP)
Gross Domestic Product (GDP)
Net National Product (NNP)
National Income (NI)
#6
What is the primary goal of monetary policy?
Stabilize prices and control inflation
Control unemployment
Regulate government spending
Stimulate economic growth
#7
In which phase of the business cycle is the economy characterized by high unemployment and low consumer spending?
Recovery
Peak
Expansion
Recession
#8
Which of the following is an example of an automatic stabilizer in fiscal policy?
Unemployment insurance
One-time tax rebate
Infrastructure spending
Corporate tax cut
#9
Which of the following is a goal of supply-side policies?
Reduce government spending
Control inflation
Reduce unemployment
Increase productivity and economic growth
#10
What is the name for a situation where the economy experiences a prolonged period of declining output and employment?
Stagflation
Deflation
Hyperinflation
Depression
#11
What is crowding out in the context of fiscal policy?
Increase in private investment due to government spending
Decrease in government spending due to high taxes
Decrease in private investment due to government borrowing
Increase in government spending due to low interest rates
#12
Which of the following is an example of discretionary fiscal policy?
Automatic stabilizers
Social security benefits
Infrastructure spending stimulus package
Unemployment insurance
#13
What is the primary goal of supply-side economics?
Stimulate demand through government spending
Reduce government intervention in the economy
Increase aggregate demand through tax cuts and deregulation
Reduce inflation through monetary policy
#14
What is the term for the phenomenon where a decrease in one sector's spending leads to a decrease in another sector's income and spending?
Multiplier effect
Crowding out
Supply-side economics
Fiscal drag