Presentation on theme: "Jeopardy! TaxesFiscal Policy Fiscal Policy Types Irresponsible Spending Government Spending and Investment Alex Trabeconomics 100 200 300 400 500."— Presentation transcript:
Jeopardy! TaxesFiscal Policy Fiscal Policy Types Irresponsible Spending Government Spending and Investment Alex Trabeconomics
An increase in taxes will change aggregate demand in which way?
A tax that charges the poor a larger percent of their income than the rich may be described as thisA tax that charges the poor a larger percent of their income than the rich may be described as this.
A tax which does not vary with level of GDP
A change in a fixed tax will simply shift the consumption function. However, an increase in a variable tax will affect the consumption function in what way?
If MPC =.75, the tax rate is 20%, and you receive a $1000 bonus at work, how much will you spend?
The government’s plan for spending and taxation which is designed to steer aggregate demand in some direction
A feature of the economy that reduces sensitivity to shocks
If taxes and government spending increase the exact same amount ($200 Billion), what will happen to GDP?
Increase by $200 Billion
In an economy with an income tax, the multiplier is likely to be ________ than without the tax.
The multiplier for a change in taxes is _______ the multiplier for a change in government spending
(Automatic/Discretionary): Congress provides a one-time tax rebate to all tax payers.
(Automatic/Discretionary): Tax revenue increases as an improving stock market leads to increasing capital gains
(Expansionary/Contractionary) (Automatic/Discretionary): Congress votes to build a new interstate highway.
(Expansionary/Contractionary) (Automatic/Discretionary): Congress votes to create an expanded unemployment insurance program
(Expansionary/Contractionary) (Automatic/Discretionary): Congress cuts funding to the National Teapot Museum, and uses the funds saved to increase transfer payments to Snapple, Inc.
This occurs when expenditures exceed revenue over a given period of time.
This is the sum of deficits over time.
_______ describes a deficit the government incurs at full employment.
When unemployment is high the government’s actual deficit will be _____ than the structural deficit.
The group to which the federal government owes the largest portion of its debt.
The federal government.
Large deficits tend to lead to higher/lower interest rates.
This describes the situation in which higher government spending leads to less (I).
Low interest rates will lead the production possibilities frontier to do this in the future.
_______ results from increased government spending when the available supply of loanable funds is high.
Assume the government runs a structurally balanced budget. If unemployment is high what will resulting budget balance be?
Increased government spending which limits (I)/This duo scored a big hit with their album “Speakerboxx/The Love Below”Increased government spending which limits (I)/This duo scored a big hit with their album “Speakerboxx/The Love Below”
This rapper has starred in the movies “The Italian Job” and “The Hitchhiker’s Guide…”/A government runs this when spending exceeds revenue.This rapper has starred in the movies “The Italian Job” and “The Hitchhiker’s Guide…”/A government runs this when spending exceeds revenue.
The government’s plan to steer the economy by manipulating spending and taxes / He’s a starting pitcher for the Yankees
Fiscal Poli-C.C. Sabathia
A one-time fiscal policy may be described as this / Chris Brown was arrested for an alleged altercation with his then girlfriend, this performer
A deficit that occurs at full employment / Orson Welles’ most famous film – number one on AFI’s 100 greatest movies of all time.