CLEMSON LATEST
MACROECONOMICS
2120 FINAL EXAM
About 2/3 of the U.S. federal budget is spend on all of the following
programs, except...
a. social security
b. medicare
c. medicaid
d. unemployment insurance and welfare - ANSWERS-D
Most of the increase in planned spending over the next 50 years comes
from.... - ANSWERS-medicare and medicaid
Which of the following is the largest source of tax revenue for the U.S.
federal government...
a. individual income tax
b. corporate income tax
c. social security and medicare taxes
d. estate taxes - ANSWERS-A.
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PAGE
1
, CLEMSON LATEST
MACROECONOMICS
2120 FINAL EXAM
_____ is federal government policy on taxes, spending, and borrowing
that is designed to influence business fluctuations. - ANSWERS-Fiscal
Policy
To fight a recession, the federal government can.... - ANSWERS-
increase its spending
What are the three main sources of funds for the U.S. federal
government? - ANSWERS-1. individual income tax
2. corporate income tax
3. social security and medicare taxes
When prices are slow to adjust to economic shocks as the New
Keynesian model and people decide to hold more cash because of a
decrease in consumer confidence would cause.... - ANSWERS-a
decrease in both the growth rate of output and inflation
The best type of negative shock for fiscal policy to respond to is a
negative shock to .... - ANSWERS-aggregate demand
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PAGE
2
, CLEMSON LATEST
MACROECONOMICS
2120 FINAL EXAM
Expansionary fiscal policy to stimulate the economy may be less
effective when... - ANSWERS-the effects of fiscal policy can often be
offset by monetary policy
Crowding out is the _____ in private spending that occurs when
government _____ spending. - ANSWERS-decrease, increase
To slow down an economy from overheating and having too much
inflation the federal government can..... - ANSWERS-decrease
government spending
Suppose the unemployment are mostly construction workers by
profession. Which government spending project will most effectively
target unused labor resources? - ANSWERS-renovating the nation's
highway system
A negative real shock causes the Solow growth curve to.... -
ANSWERS-shift inward
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PAGE
3
MACROECONOMICS
2120 FINAL EXAM
About 2/3 of the U.S. federal budget is spend on all of the following
programs, except...
a. social security
b. medicare
c. medicaid
d. unemployment insurance and welfare - ANSWERS-D
Most of the increase in planned spending over the next 50 years comes
from.... - ANSWERS-medicare and medicaid
Which of the following is the largest source of tax revenue for the U.S.
federal government...
a. individual income tax
b. corporate income tax
c. social security and medicare taxes
d. estate taxes - ANSWERS-A.
END OF
PAGE
1
, CLEMSON LATEST
MACROECONOMICS
2120 FINAL EXAM
_____ is federal government policy on taxes, spending, and borrowing
that is designed to influence business fluctuations. - ANSWERS-Fiscal
Policy
To fight a recession, the federal government can.... - ANSWERS-
increase its spending
What are the three main sources of funds for the U.S. federal
government? - ANSWERS-1. individual income tax
2. corporate income tax
3. social security and medicare taxes
When prices are slow to adjust to economic shocks as the New
Keynesian model and people decide to hold more cash because of a
decrease in consumer confidence would cause.... - ANSWERS-a
decrease in both the growth rate of output and inflation
The best type of negative shock for fiscal policy to respond to is a
negative shock to .... - ANSWERS-aggregate demand
END OF
PAGE
2
, CLEMSON LATEST
MACROECONOMICS
2120 FINAL EXAM
Expansionary fiscal policy to stimulate the economy may be less
effective when... - ANSWERS-the effects of fiscal policy can often be
offset by monetary policy
Crowding out is the _____ in private spending that occurs when
government _____ spending. - ANSWERS-decrease, increase
To slow down an economy from overheating and having too much
inflation the federal government can..... - ANSWERS-decrease
government spending
Suppose the unemployment are mostly construction workers by
profession. Which government spending project will most effectively
target unused labor resources? - ANSWERS-renovating the nation's
highway system
A negative real shock causes the Solow growth curve to.... -
ANSWERS-shift inward
END OF
PAGE
3
