Welcome to the trivia quiz on a balanced budget. When it comes to managing one's finances, it is important to have a basic budget where you have an estimate of how much expenses you will have and what amount of money you will allocate to it. This is done through different types of budgets. Take the quiz and see how much you understand the balanced budget.
The national debt is reduced to zero dollars.
A budget deficit during one year is matched by a budget surplus in the next year.
Transfer payments equal tax revenues.
Government expenditures equal tax revenues.
Occurs when government expenditures exceed tax revenues.
Occurs when tax revenues exceed government expenditures.
Occurs when tax revenues exceed transfer payments.
Occurs when monetary policy works in the opposite direction of fiscal policy.
Is an impossibility.
Occurs when government expenditures exceed tax revenues.
Occurs when tax revenues exceed government expenditures.
Occurs when transfer payments exceed tax revenues.
Will always result when Congress and the president cannot agree on expenditures.
Occurs when monetary policy works in the opposite direction of fiscal policy.
Efforts to balance a government's budget.
Changes in the money supply to achieve particular economic goals.
Changes in government expenditures and taxation to achieve particular economic goals.
The change in private expenditures that occurs as a consequence of changes in government spending.
Expansionary fiscal policy.
Expansionary monetary policy.
Contractionary fiscal policy.
Contractionary monetary policy.
Expansionary fiscal policy.
Expansionary monetary policy.
Contractionary fiscal policy.
Contractionary monetary policy.
Increasing; increasing; decreasing; decreasing
Decreasing; decreasing; increasing; increasing
Increasing; decreasing; increasing; decreasing
Decreasing; increasing; increasing; decreasing
Increasing; decreasing; decreasing; increasing
A decrease in the rate of growth of the stock of money decreases GDP.
A deficit causes an increase in interest rates, which causes a decrease in investment spending.
An increase in tariffs causes a decrease in imports.
A decrease in government housing subsidies causes an increase in private spending on housing.
A decrease in aggregate demand.
No change in aggregate demand.
An increase in aggregate demand.
A downward movement along the aggregate demand curve.
Incomplete crowding out.
Complete crowding out.
Zero crowding out.
A and c
None of the above
Rise; rise
Rise; fall
Fall; rise
Fall; fall
Rise; rise
Rise; fall
Fall; rise
Fall; fall
Crowding out.
Lags
The position of the physical production possibilities frontier.
A and b
A, b, and c
The government's actions will have their intended effect.
The government's actions will cause businesses to become more optimistic about the economy, and they will increase their output even more than the government had intended.
The government's actions will raise interest rates, causing decreased investment and consumption, and the economy will not expand as much as the government had intended.
This is a trick question, because the federal government is required by law to increase taxes by the same amount as it increases expenditures.
Incomplete crowding out.
Complete crowding out.
Zero crowding out.
A and c
None of the above
Rise; rise
Rise; fall
Fall; rise
Fall; fall
The economy turns down on January 8, 2006, but policymakers do not figure this out until April 19, 2006.
Policymakers wait and see what is really going on with the economy.
Policymakers implement policy X on September 12, 2006, but the effects are not felt until six months later.
The data lag is illustrated equally well by a, b, and c.
Policymakers believe an economic downturn has occurred, but they decide not to take action until they are sure.
Policymakers are in the process of proposing policy measures to deal with the current economic slowdown.
Policymakers first learn of the recession when it is five months old.
Policymakers implement policy X, but it will be a few months before it starts working.
Policymakers agree to policy X, but it will be at least two months before the policy is implemented.
Effectiveness
Transmission
Legislative
Data
Data
Wait-and-see
Legislative
Transmission
Average
Fixed
Total
Marginal
$180 $18,000 $180
$2,000
$18,000
$1,800
$1,345
$1,950
$3,900
$2,980
$3,760
$8,500
$5,900
$6,840
$7,600.
$10,200.
$8,780.
$15,300.
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