Fiscal Policy: Taxes

Question 1

How can expansionary and contractionary tax policies be used to manage the economy?Be sure to give your answer in two to three sentences.

Revolt · Accepted Answer

Expansionary tax policies lower taxes to stimulate spending, investment, and economic growth, especially when unemployment is high. Contractionary tax policies raise taxes to reduce spending and slow economic growth when inflation is rising.

Question 2

Based on the information provided, what type of tax has Country Q implemented?

Revolt · Accepted Answer

a tariff

Question 3

Based on what you have read, what type of tax is Robert paying?

Revolt · Accepted Answer

an excise tax

Question 4

What are the most likely effects of this policy? Check all that apply.

Revolt · Accepted Answer

Businesses will likely hire more workers.; Businesses will likely earn higher profits.; Businesses will likely invest more in the economy.

Question 5

X progressive✔ regressiveX proportional

Revolt · Accepted Answer

✔ regressive

Question 6

higherequal lower

Revolt · Accepted Answer

equal

Question 7

about $80 billionabout $280 billionabout $480 billion

Revolt · Accepted Answer

about $480 billion

Question 8

property taxesregressive taxescorporate taxes

Revolt · Accepted Answer

property taxes

Question 9

What details did you discuss in your response? Check all that apply.

Revolt · Accepted Answer

the difference between expansionary policy and contractionary policy; expansionary policies are used to stimulate the economy and reduce unemployment; contractionary polices are used to reduce economic growth and combat inflation

Question 10

more tax thanless tax than✔ the same tax as

Revolt · Accepted Answer

✔ the same tax as

Fiscal Policy: Taxes Answers

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