Econ. Ch. 17 + Fiscal Policy Quiz

The Economic Stimulus Act provided _______ dollars per individual and ________dollars per couple.

$600 and $1200

In 2009, the U.S. government spent $1.4 trillion more than it collected in taxes. This deficit was about:

10% of the size of the U.S. GDP in 2009.

A government annually collects $230 billion in tax revenue and allocates $70 billion to military spending. What percentage of this government's budget is spent on its military?

30.43%

What do goods like gasoline, tobacco, and alcohol typically share in common?

They are all subject to government excise taxes.

During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:

aggregate demand curve will shift to the right.

The federal government levies _____________________________ on people who pass assets ____________________________, either after death or during life.

an estate and gift tax; to the next generation

One componet of the Economic Stimulus Act was to send households money in the form of _________.

checks

In 2010, Microsoft will pay corporate income tax to the federal government based on the company's __________________.

corporate profits

When the government passes a new law that explicitly changes overall tax or spending levels, it is enacting:

discretionary fiscal policy.

The Economic Stimulus Act was signed with the intention of ___________ the effects of the recession.

lessening

A __________________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes.

progressive tax

If South Dakota's governor reports a budget surplus in 2011, that state government likely:

received more in taxes than it spent in that year.

The idea behind the Economic Stimulus Act was that US households are typically poor savers and spend money. If households were given money, then they would most likely _____________ it. Thus, impacting spending in the economy.

spend

When increasing oil prices cause aggregate supply to shift to the left, then:

unemployment and inflation increase.

________ policy is the governments use of taxation and spending to influence the economy.

Fiscal

The Economic Stimulus Act of 2008 was signed by former President _____________.

George Bush