4: Which of the following statements about government spending is true? Responses

a: The share of healthcare spending in GDP has increased substantially since the 1960's. b: .Interest payments on government debt as a percentage of GDP have steadily increased.

c: Total government spending as a percentage of GDP has increased every year since the 1960's.

5: An argument to promote education is that it will

a: increase labor productivity and economic growth in the long run

b: increase capital accumulation or deepening in the economy

c: create jobs for teachers

6: A contractionary fiscal policy by a government may result in which of the following? Responses

a: a reduction in government borrowing

b: An increased trade deficit

c: crowding out of private investment

d: lower interest rates

7: If an economy moves into a recession, causing that country to produce less than potential GDP, then: Responses

a: tax revenue and government spending will be lower because of automatic stabilizers.

b: tax revenue and government spending will be higher because of automatic stabilizers.

c: automatic stabilizers will cause tax revenue to decrease and government spending to increase.

d: automatic stabilizers will cause tax revenue to increase and government spending to decrease.

8: Astor's income and federal income tax contributions are in the table below. The federal income tax in Astor's country is ________. Taxable Income Federal Income Tax Payment 2016 $75,000 $9,000 2017 $84,000 $12,000

proportional.

regressive.

progressive.

9.