ECON 312 Week 5 Quiz

                   ECON312 Principles of Economics - DeVry

ECON 312 Week 5 Quiz Set 1

Question 1. (TCO 6) Fiscal policy refers to the

Question 2. (TCO 6) Suppose that the economy is in the midst of a recession. Which of the following policies would most likely end the recession and stimulate output growth?

Question 3. (TCO 6) The crowding-out effect of expansionary fiscal policy suggests that

Question 4. (TCO 5) Which of the following would not shift the aggregate supply curve?

Question 5. (TCO 6) Other things equal, a reduction in personal and business taxes can be expected to

Question 6. (TCO 6) The MPC can be defined as that fraction of a

Question 7. (TCO 6) Dissaving means

Question 8. (TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD3? Question 9. (TCO 6) The multiplier is

Question 10. (TCO 5) The American Recovery and Reinvestment Act of 2009 was implemented primarily to

Question 11. (TCO 5) What effect would each of the following have on aggregate demand or aggregate 

 Question 12. (TCO 6) Why do some economists believe that tax cuts are critical to help revive an economy experiencing a recession?

ECON 312 Week 5 Quiz Set 2

1. Question: (TCO 6) Expansionary fiscal policy is so named because it
2. Question: (TCO 6) An economist who favors smaller government would recommend
3. Question: (TCO 6) The lag between the time and the need for fiscal action is recognized and the time the action is taken is referred to as the
4. Question: (TCO 5) The determinants of aggregate supply
5. Question: (TCO 6) Other things equal, a reduction in personal and business taxes can be expected to
6. Question: (TCO 6) The MPC can be defined as that fraction of a
7. Question: (TCO 6) The size of the MPC is assumed to be
8. Question: (TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD3?
9. Question: (TCO 6) The multiplier can be calculated as:
10. Question: (TCO 5) The American Recovery and Reinvestment Act of 2009
11. Question: (TCO 5) What effect would each of the following have on aggregate demand or aggregate supply? Explain.
a.       A reduction in personal income tax
b.      b. An increase in payroll taxes paid by the employer

12. Question: (TCO 6) Why do some economists believe that tax cuts are critical to help revive an economy experiencing a recession?