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ECON 312 Week 5 Quiz (Set 2)


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ECON 312 Week 5 Quiz (Set 2)


  • Version 2
  1. (TCO 6) Expansionary fiscal policy is so named because it
  2. (TCO 6) An economist who favors smaller government would recommend
  3. (TCO 6) The lag between the time and the need for fiscal action is recognized and the time the action is taken is referred to as the
  4. (TCO 5) The determinants of aggregate supply
  5. (TCO 6) Other things equal, a reduction in personal and business taxes can be expected to
  6. (TCO 6) The MPC can be defined as that fraction of a
  7. (TCO 6) The size of the MPC is assumed to be
  8. (TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD3?
  9. (TCO 6) The multiplier can be calculated as:
  10. (TCO 5) The American Recovery and Reinvestment Act of 2009
  11. (TCO 5) What effect would each of the following have on aggregate demand or aggregate supply? Explain. a.    A reduction in personal income tax.    b. An increase in payroll taxes paid by the employer
  12. (TCO 6) Why do some economists believe that tax cuts are critical to help revive an economy experiencing a recession?

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