Aplia Quiz Questions

Question 0

If policymakers want to fix a recession they would

Answer 0

Institute and expansionary gap

Question 1

In the event of a recession the market would naturally respond to the output gap by?

Answer 1

Increasing output supply and price level would fall

Question 2

Discretionary fiscal policy that could bring the economy closer to potential output

Answer 2

A tax cut and additional spending on national park facilities I E increased government spending

Question 3

Two ways to decrease aggregate demand

Answer 3

Tax increase and reduce spending on education

Question 4

Expansionary policy will shift aggregate demand to the? what will happen to the price?

Answer 4

To the right
Aggregate output
And price level will rise

Question 5

What happens to the budget with expansionary policy when the budget is already balanced?

Answer 5

This policy will create budget deficit

Question 6

The steeper the short run aggregate supply curve is

Answer 6

The greater the impact on expansionary fiscal policy has on price level

Question 7

Name three automatic stabilizers

Answer 7

Taxes
transfer payments
and more dollar spent towards foreign business

Question 8

Name two things that are not automatic stabilizer

Answer 8

Spending on domestic consumption or investment and discretionary changes to taxes and government purchases because it requires legislative action