Glendale Community College » Economics » Econ 102 - Principles of Macroeconomics » Winter 2021

Question #1

If tax revenue is less than government spending, the country is operating on a(n)

A. contractionary fiscal policy

B. expansionary fiscal policy

C. budget surplus

D. budget deficit

Question #2

A progressive tax is one in which

A. the poor pay more in taxes than the wealthy

B. wealthier people pay more in taxes than the poor

C. wealthier people pay less in taxes than the poor

D. the poor pay the same amount as the wealthy

Question #3

Which of the following would be considered contractionary fiscal policy?

A. an increase in tax credits

B. an increase in government spending

C. an increase in taxes

D. a decrease in taxes

Question #4

An increase in public works projects would cause

A. AD to shift left

B. AS to shift left

C. AS to shift right

D. AD to shift right