Output has fallen for a year and unemployment is high. Which fiscal action is most expansionary?

Prices are rising rapidly because total spending is outpacing the economy's productive capacity. Which fiscal response fits this condition?

A recession has closed factories and reduced household income. Which action by Congress would best provide fiscal stimulus?

Real output is growing beyond sustainable capacity and inflation is accelerating. What fiscal action would be most appropriate?

A sharp decline in consumer spending has caused layoffs. Which fiscal tool could Congress use to encourage household spending?

Demand-driven inflation persists while unemployment is low. Which fiscal choice is most likely to slow aggregate demand?

During a severe downturn, Congress wants to support families who lost jobs. Which action is expansionary fiscal policy?

Congress approves tax rebates for households and new highway spending. How is this fiscal policy classified?

Congress enacts a temporary income-tax surcharge and cuts several federal programs. How is this policy classified?

A law cuts business taxes and increases federal defense purchases while unemployment is elevated. How should the policy be classified?

Congress raises an excise tax and cancels planned grants to state governments to address high inflation. This is what kind of fiscal policy?

Congress cuts funding for a specific entitlement program to reduce federal outlays. How is this policy classified?

Congress funds bridge construction and gives firms a temporary tax credit for new equipment during a recession. What type of fiscal policy is this?

Who has the constitutional power to pass laws changing federal tax rates and spending levels?

Which pair correctly identifies the main fiscal-policy tools?

Which of these is an example of an automatic stabilizer?

A congressional committee proposes changing how much of each worker's income the federal government collects. Which fiscal-policy lever is it considering?

Which economist argued that government spending should increase during a downturn when private demand is weak?

Which economist advocated a stable, predictable rate of money-supply growth rather than frequent discretionary policy changes?

Who wrote "The General Theory of Employment, Interest and Money," a work associated with the case for government action during severe downturns?

Which economist argued that markets generally work best with limited government intervention and criticized discretionary fiscal fine-tuning?

Federal infrastructure spending rises during a slump. What is the intended path to higher employment?

Congress cuts income taxes during a recession. What is the most direct intended effect on aggregate demand?

To curb inflation, Congress raises income taxes. What chain of effects is most consistent with contractionary fiscal policy?

Congress cuts federal purchases of equipment and services while private demand is already weak. What is the likely short-run effect on output and jobs?