Fiscal Policy: Spending

Question 1

Spending that is required by law is known as

Revolt · Accepted Answer

mandatory spending.

Question 2

Which statement best describes the likely effects of an expansionary fiscal policy?

Revolt · Accepted Answer

It can reduce interest rates and unemployment, but increase inflation.

Question 3

A graph shows the U S Government and Expenditures from 1980 to 2010. The money spent and money received generally follow the same trend, but around 2008, the amount of money spent increased and money received decreased.

Revolt · Accepted Answer

2000 to 2010

Question 4

A plan for spending money that balances income with spending and shows how money will be spent is

Revolt · Accepted Answer

a budget.

Question 5

"Meeting the spending targets in this budget meant some very difficult choices."President Barack Obama,2012 Budget Message of the President

Revolt · Accepted Answer

deciding what would be funded and what would be cut

Question 6

Which of the following statements most accurately describes the federal government and its employees?

Revolt · Accepted Answer

Millions of Americans work for the federal government.

Question 7

Revenue and expenditures are sitting on a balance at the same level.

Revolt · Accepted Answer

balanced

Question 8

When revenues are higher than expenditures in a budget, that budget

Revolt · Accepted Answer

shows a surplus.

Question 9

What is the main goal in creating the federal budget?

Revolt · Accepted Answer

deciding how to manage the government’s tax revenue and expenditures

Question 10

A graph titled Total U S Government Spending as Percentage of G D P from 1990-2012 has year on the x-axis and percentage of G D P on the y-axis, from 15 to 30 percent in increments of 5. The percentage of G D P is lowest at 18 percent in 2001 and highest at 25 percent in 2009.

Revolt · Accepted Answer

one quarter of GDP.

Fiscal Policy: Spending Answers

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