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Government Studies Multiple Questions

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1. Social insurance programs are ______.




2. Which of the following is NOT an example of government purchases of goods and services?



3. If the economy is at potential output, and consumption spending suddenly decreases due to a fall in consumer confidence, the appropriate fiscal policy is ______.



4. To close an inflationary gap employing fiscal policy, the government could ______.

      


5. Government’s efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of _______.



6. Changes in taxes and government transfers shift the aggregate demand curve ______ equal-sized changes in government purchases.



7. The presence of automatic stabilizer in government tax revenue that occurs when GDP rises _______.

      


8. The budget balance is calculated as ______.



9. The larger the amount of outstanding public debt ______.

      


10. Implicit liabilities of a government are _______.


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1. Social insurance programs are ______.




2. Which of the following is NOT an example of government purchases of goods and services?



3. If the economy is at potential output, and consumption spending suddenly decreases due to a fall in consumer confidence, the appropriate fiscal policy is ______.



4. To close an inflationary gap employing fiscal policy, the government could ______.

      


5. Government’s efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of _______.



6. Changes in taxes and government transfers shift the aggregate demand curve ______ equal-sized changes in government purchases.



7. The presence of automatic stabilizer in government tax revenue that occurs when GDP rises _______.

      


8. The budget balance is calculated as ______.



9. The larger the amount of outstanding public debt ______.

      


10. Implicit liabilities of a government are _______.


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