Question 60 / 1 point

In response to an economic downturn the government enacts a stimulus package that is passed by the Canadian Parliament. The stimulus plan is part of ________.

a.monetary policy

b.automatic fiscal policy

c.discretionary fiscal policy

d.contractionary fiscal policy

Question 70 / 1 point

When government tax revenue exceeds outlays the government has a

a.budget balance.

b.budget deficit.

c.debt.

d.budget surplus.

e.balanced budget.

Question 8

A budget deficit is a structural deficit ________.

if the budget would remain in deficit when the economy is at full employment

if the deficit remains the same as real GDP changes

only because real GDP is less than potential GDP

only during a recession

Question 9

Government debt ________ if _______ .

a.decreases; the government budget is a deficit

b.decreases; the government revenues exceeds outlays

c.increases; the government budget is a surplus

d.increases; the government outlays increase

Question 100 / 1 point

An increase in current disposable income leads to

a.an increase in consumption only.

b.a decrease in saving but an increase in consumption.

c.an increase in both consumption and saving.

d.an increase in saving only.

e.an increase in saving but a decrease in consumption.

Question 110 / 1 point

The budget balance that would occur if the economy were at full employment is called

a.an automatic stabilizer.

b.a structural surplus or deficit.

c.a budget deficit or surplus.

d.a balanced budget.

e.a cyclical surplus or deficit.