Week 4 Knowledge Check Study Guide Score:
Concepts Mastery Questions
BUDGET SURPLUS 100%
1
BUDGET DEFICIT AND
2 3
100%
BUDGET SURPLUS
TAX POLICY 100%
4 5
FISCAL POLICY 100%
6
Concept: BUDGET SURPLUS
Mastery 100% Questions 1
1.
In the long-run framework, budget surpluses
, A. should be run whenever output dips below potential output
B. should never be run since they crowd out investment in the
short-run
C. are better than budget deficits over the long-run because
unlike budget deficits, they increase savings and investment
D. should be run on a permanent basis since they boost saving
and investment and stimulate growth
Correct:
The Correct Answer is: C.
Concept: BUDGET DEFICIT AND BUDGET SURPLUS
Mastery 100% Questions 2 3
2.
Concepts Mastery Questions
BUDGET SURPLUS 100%
1
BUDGET DEFICIT AND
2 3
100%
BUDGET SURPLUS
TAX POLICY 100%
4 5
FISCAL POLICY 100%
6
Concept: BUDGET SURPLUS
Mastery 100% Questions 1
1.
In the long-run framework, budget surpluses
, A. should be run whenever output dips below potential output
B. should never be run since they crowd out investment in the
short-run
C. are better than budget deficits over the long-run because
unlike budget deficits, they increase savings and investment
D. should be run on a permanent basis since they boost saving
and investment and stimulate growth
Correct:
The Correct Answer is: C.
Concept: BUDGET DEFICIT AND BUDGET SURPLUS
Mastery 100% Questions 2 3
2.
