Fiscal Policy

Question 1

What happens to the amount of money the government collects in taxes if unemployment is high?

Revolt · Accepted Answer

It goes down.

Question 2

Examine the pie chart.

Revolt · Accepted Answer

Social Security and Education/Health and Human Services

Question 3

What is a difference between payroll and income taxes?

Revolt · Accepted Answer

Payroll taxes are itemized deductions from an individual’s paycheck, while income taxes are based on an individual’s salary.

Question 4

What gives Congress the power to raise taxes to fund services?

Revolt · Accepted Answer

the Constitution

Question 5

In addition to raising money, the government imposes excise taxes to

Revolt · Accepted Answer

discourage the use of specific products.

Question 6

When might workers be exempt from paying income taxes?

Revolt · Accepted Answer

when they don’t earn enough money

Question 7

Money spent on government programs is referred to as

Revolt · Accepted Answer

an expenditure.

Question 8

A new presidential administration takes office, after having made campaign promises to support entitlement programs.One suggestion the new president is most likely to make in the budget proposal is to

Revolt · Accepted Answer

increase spending on Social Security.

Question 9

Fiscal policy is the government’s approach to

Revolt · Accepted Answer

taxing and spending.

Question 10

expenditurerevenuebudget

Revolt · Accepted Answer

expenditure

Fiscal Policy Answers

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