Scribd
Upload
6 views2 pages

Understanding Fiscal Policy and National Debt

Chapter 33 Homework covers key concepts in fiscal policy, national debt, and government spending. It includes multiple-choice and true/false questions regarding the implications of national debt, budget deficits, and taxation. The chapter emphasizes the importance of understanding the relationship between national debt and GDP, as well as the role of automatic stabilizers in the economy.

Uploaded by

clarinetslakeridge
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
6 views2 pages

Understanding Fiscal Policy and National Debt

Chapter 33 Homework covers key concepts in fiscal policy, national debt, and government spending. It includes multiple-choice and true/false questions regarding the implications of national debt, budget deficits, and taxation. The chapter emphasizes the importance of understanding the relationship between national debt and GDP, as well as the role of automatic stabilizers in the economy.

Uploaded by

clarinetslakeridge
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 33 Homework

1. Fiscal Policy describes:


A) The government’s changes in spending and tax policy to influence aggregate demand
B) The government’s changes in money creation or supply to influence aggregate
demand
C) Ugh.

2. The country’s national debt is the summation of


A) Each year’s government spending
B) The total annual budget deficits run since the country’s founding
C) The total of every budget surplus run since the American Revolution
D) The total amount of personal credit card each American holds

3. True/False: While the national debt in absolute terms is important, economists are most
concerned about the nation’s debt to GDP ratio.

A) Yeah man, that’s true!


B) Naw man, you’re pulling my leg!

4. True/False: The United States has run budget deficits for the vast majority of its existence as
a nation.

A) Yeah, that sounds true!


B) Nope, that’s FALSE!
5. True/False: Healthcare and Social Security spending comprise the majority of the
government’s budget.

A) Yep, that’s true!


B) Nope! False!

6. Progressive income taxation describes:

A) The policy of higher income earners paying a relatively low percentage of their income
and lower income earners paying a relatively high percentage of their income
B) The policy of higher earners paying a relatively high percentage of their income and
lower income earners paying a relatively low percentage of their income

7. Automatic Stabilizers are:

A) Built-in policies that attempt to smooth the business cycle by automatically adjusting tax
burdens using different tax brackets and by adjusting government spending on
unemployment during economic expansions and recessions
B) The shock absorbers your mechanic places on your car to help prevent a rough ride when
your car drives over big bumps
C) The training wheels your parents put on your bicycle when you’re first learning to ride

8. True/False: In the United States, our national debt ($21 trillion) currently exceeds the
combined value of our yearly output/GDP ($19 trillion).

A) Yikes! That’s true!


B) FALSE!

You might also like