National Income and Price Determination
During an economic expansion, what fiscal policy action should the government take?
What is the primary tool used in fiscal policy to combat recession?
What long-term impact might tight monetary policy have if sustained over several years beyond controlling high levels of inflations?
During a period of high government debt, which fiscal policy action should the government prioritize?
What would be a likely consequence of a contractionary fiscal policy implemented when an economy is at full employment?
If the economy is in a severe recession, what fiscal policy action would be most effective in stimulating economic activity?
If a central bank sets higher than expected interest rates for a longer period than the market had anticipated, what is the likely outcome for economic growth in the next few years?
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A budget deficit occurs when a government's:
Contractionary fiscal policy may involve which of the following actions?
Which of these would be considered an expansionary fiscal policy?