m. 17

An example of expansionary fiscal policy would be to increase taxes.

False

Medicare covers the majority of the cost of healthcare for Americans who have low incomes.

False

An example of a social insurance program would be unemployment insurance.

True

An example of contractionary fiscal policy would be to decrease government spending on goods and services.

True

Contractionary fiscal policies decrease the aggregate demand curve

True

The federal government indirectly controls government spending (G).

False

The multiplier formula associated with changes in G is expressed mathematically as MPC/(1−MPC).

False

Which of the following was the highest source of government tax revenue in the United States in 2018?

Individual income taxes

Which of the following was the largest source of total government spending in the United States in 2018?

NOT HEALTH CARE OR DEFENSE

The magnitude of the shift of the aggregate demand curve is determined by the value of the multiplier.

True