Question

QUESTION 32

How federal government taxing and spending affects aggregate demand is

	a.	a major concern of fiscal policy.
	b.	a major concern of international policy.
	c.	a major concern of corporate policies.

QUESTION 34

How would a balanced budget amendment change the effect of automatic stabilizer programs?

	a.	They could no longer exist because the government would not have a way to pay for these programs.
	b.	They would lose flexibility because spending could not increase unless funds were there.
	c.	They would increase in flexibility because they could kick in before Congress has time to adjust the budget.

QUESTION 58

Which of the following makes up the largest share of federal tax revenues comes?

	a.	excise taxes
	b.	estate taxes
	c.	payroll taxes (for Social Security & Medicare)

Answer 1

32. a a major concern of fiscal policy .

government use fiscal policy for aggregate demand and balancing economy.'

33. a. they could no longer exist because the government would not have to pay for these program

automatic stabilizers helps in maintaining economic cycle even without government interpution.

34. c. payroll taxes.

order is individual income tax and payroll taxes> corporate income tax> excise tax> estate tax and gift tax