1. Fiscal policy involves changing taxes and government spending. is enacted by
ID: 1133624 • Letter: 1
Question
1. Fiscal policy
involves changing taxes and government spending.
is enacted by the Federal Reserve.
involves changing interest rates.
involves changing the money supply.
2. The Classical School strongly supports all four functions of government equally.
True
False
3. In the U.S. economy, which of the following statements is TRUE?
Production is divided evenly between goods and services.
More services are produced than goods.
More goods are produced than services.
The economy is too complex to determine the proportion of production that is devoted to producing services.
4. The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of
the invisible hand.
a mixed economy.
market capitalism.
centrally planned socialism.
5. The Great Recession in the Idaho (2007-2009) was not as severe as the 1980-1982 recessions.
True
False
6. John Maynard Keynes:
was supported by most Democratic Party presidential candidates.
supported greater government intervention in the economy.
helped elevate macroeconomics in importance.
was true for all of these questions.
was the most famous economist of the 20th century.
7. The Great Recession in the U.S. (2007-2009) was not as severe as the 1980-1982 recessions.
True
False
8. Milton Friedman was a:
All of the answers in this question are true.
Libertarian.
Classical economist.
Nobel Prize winning economist.
Republican.
involves changing taxes and government spending.
is enacted by the Federal Reserve.
involves changing interest rates.
involves changing the money supply.
Explanation / Answer
1) Fiscal policy deals with change in government policies towards spending and tax rates depending on the growth in economy.
Answer: involves change in taxes and government spending
2) Answer: False
Classic economic theory does not support the function of government according to that theory they want minimal interference of government.
5)Answer : False
The recession in 2007-2008 is considered as great recession as it effected every country in the world. The recession of 1980-1982 is for US only.
6) Answer: was true for all the options
John Maynard Keynes is one of the most influential and famous economist of 20 centuary and also helped to elevate macroeconomics. He was the one who said government intervention should be there for growth in economy.
7)Answer: All the answers are true.
Milton Friedman is one of the economist who got noble prize in economics sciences. He is also an economist libertarian and a republican who gave the Milton Friedman theory.
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