Economic Policy Quiz Flashcards
What is the key argument of John Maynard Keynes?
Government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs.
What actions marked a decisive break with the tradition of the federal government promoting compromises between labor and management?
When President Ronald Reagan fired striking air traffic controllers and hired permanent
replacements to fill their jobs in 1981.
A way to reduce the disparities in wealth between the rich and poor is called
policy of redistribution
The best way for Federal Reserve Board officials to help boost a stagnant economy is to
lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses
What is NOT one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?
Public opinion, which overwhelmingly favors economic interests over the environment
During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.
John Maynard Keynes’s
A ________ is an incentive in the tax code for individuals and corporations to invest their money in ways that government officials desire in exchange for a reduction in tax liabilities.
loophole
Today, labor unions represent about ________ percent of the labor force.
11
What did the Great Depression and World War II do to the public’s expectations regarding employment?
They showed that the government could help to ensure full employment.
In order to have reliable information about the costs and impact of economic policies, Congress created the ________.
Congressional Budget Office
The recession of 2008 led to the loss of ________ million American jobs.
8 million
Why do many businesses prefer Congress to regulate the economy?
One national regulation is better than the inconsistencies and disparities of different state laws.
Vehicle safety is one of the chief responsibilities of the Department of ________.
Transportation
Congress was granted the power to tax personal income in ________.
1913
________ once said “Now I am a Keynesian.”
Richard Nixon
