Ch 16 Fed Govt Inquizitive

While ----- involves proposals such as cap-and-trade and raising the gasoline tax, ------ involves plans such as building stronger flood walls and relocating individuals living in flood-prone areas.

-Mitigation -Adaptation

Place the following events in the history of American economic policy in chronological order.

1. The Great Depression Begins 2. Franklin Roosevelt starts the New Deal 3. Keynesianism becomes the dominant economic theory in the American politics. 4. Supply-side economics gains popularity

Suppose you earned $100,000 in 2018 and filed taxes as an individual. According to the chart, what tax rate did you pay on the first dollar you earned? Table 16.1 Taxable Income Brackets and Rates, 2018

10%

Federal-government-authorized spending on new seawalls to contain flooding due to climate change is an example of what concept?

Adaptation

At what point did mandatory spending first take up more of the federal budget than discretionary spending? Select the year in the following graph.

Click on the year 1975

Choose all of the following parts of the federal government that played a major role in stabilizing the economy after the 2008 economic crisis.

Congress the president the Treasury Department

Match each economic goal to the example that best demonstrates it.

Congress enacts a single national regulation for car emissions. = promote stable markets Congress calls the head of General Motors to testify over faulty car ignition systems.protect = protect employees and consumers The government awards over one billion dollars in funding to microchip consortium Sematech. = promote business development The National Science Foundation awards millions of dollars in research grants. = promote economic prosperity

Despite the party conflict, Congress is regularly able to pass a yearly budget.

False

The government drew on the lessons from supply-side economics in its response to the Great Recession of 2008.

False

Which of the following statements would a Keynesian agree with?

Governments should run deficits during recessions. The government can soften the effects of a recession. Tax cuts and increased spending during recessions are good ideas.

Which organization sets the president's proposed budget for the year?

Office and Management and Budget

Which of the following statements about subsidies are accurate?

Subsidies are a popular tool among legislators. Subsidies can be spread widely in response to various demands.

Which of the following statements about the Congressional Budget Office are correct?

The Congressional Budget Office was created to provide Congress with information about the costs and impacts of potential policies.

Imagine that the nation has just entered an unexpected recession. Place the following items in the order in which we would expect them to occur according to a textbook approach to monetary policy.

The Federal Reserve lowers the target for the federal funds rate. Consumer interest rates decrease. The number of businesses and individuals taking out loans increases. Economic growth recovers. The Federal Reserve raises the target for the federal funds rate.

Match each political party to its beliefs about economic policy.

The wealthy should have higher taxes than others. = Democratic Party Government spending should be cut. = Republican Party Government should intervene in the economy. = Democratic Party

According to the chart on the government's sources of taxation over time, which of the following statements best describes the changes in federal taxes in the past 50 years?

They have become more regressive

Which of the following are examples of public policy?

a law passed by Congress a federal rule issued by an agency a court ruling a presidential order

Which of the following actions has the Trump administration taken with respect to environmental policy?

announced plans to withdraw from the Paris Climate Accord repealed Clean Power Plan

What does the government achieve through its use of contracting?

encouraging desirable corporate behavior building up sectors of the economy purchasing goods and services

Which of the following are tools that the Federal Reserve can use to carry out monetary policy?

engaging in open-market operations changing the federal funds rate

In the 1980s, Congress and the president responded to changes in the business climate by passing a broad new set of regulations.

false

Social Security, Medicare, and interest payments on the national debt are all examples of what kind of government spending?

mandatory

Put the following budget categories in order from the one that takes up the largest percentage of the federal budget to the one that takes up the smallest percentage of the federal budget.

mandatory spending such as Social Security and Medicare discretionary spending such as welfare, education, and foreign aid interest on the national debt

Which of the following methods are currently being considered by the federal government to deal with climate change?

mitigation by reducing emissions promoting alternative technologies adapting to climate change

What economic goal does the Securities and Exchange Commission (SEC) help the government achieve the most?

promote economic prosperity

Match each of the following agencies with its function.

provide independent expertise on budgeting to the executive branch = Office of Management and Budget protect bank accounts against bank closures, up to $250,000 per account = Federal Deposit Insurance Corporation provide independent expertise on budgeting to the legislative branch = Congressional Budget Office manipulate the money and credit supply in the country = Federal Reserve

Which of the following are examples of government policies that promote alternative technologies?

subsidies for solar panel manufacturers providing tax incentives for producing clean energy

Match each statement with the economic philosophy it represents.

supply-side economics = Lower taxes lead people to work harder, which increases overall revenue for the government. Keynesianism = The government can control the business cycle by strategically spending or changing the tax rate. laissez-faire capitalism = The best thing the government can do for the economy is stay out of it as much as possible.

Which statement about the federal minimum wage is correct?

the value of the nominal federal minimum wage has decreased due to inflation

Which of the following is the correct definition of gross domestic product (GDP)?

total value of goods and services produced within a country

The Federal Reserve has a dual mandate (or responsibility) that requires it to focus first and foremost on which two things?

unemployment inflation