7. _________ marks the beginning of fiscal year 2016 for the federal government.

Group of answer choices

October 1, 2017

October 1, 2016

January 1, 2016

October 1, 2015

8. A maximum effect of a given increase in government spending can be achieved if which of the following happens?

Group of answer choices

The federal budget is adjusted to balance.

The Fed accommodates the fiscal policy by increasing interest rates.

The Fed accommodates the fiscal policy by holding interest rates constant.

There is an equal increase in net taxes.

9. When a tax cut is perceived to be permanent, the _______ effect will be _______.

Group of answer choices

expansionary; smaller

expansionary; greater

contractionary; smaller

contractionary; greater

10. How will the natural level of real output be restored if there is a negative output gap and the government takes no action?

Group of answer choices

A downward shift of the aggregate supply curve

An upward shift of the aggregate supply curve

A leftward shift of the aggregate demand curve

A rightward shift of the aggregate demand curve