ECON 202 ECON202 Quiz 3 with Answers (American Public University)

ECON 202 ECON/202 ECON202 Quiz 3 (APUS)

1. Business cycles are
2. Contractionary policies are policies designed to
3. Tax cuts aimed at businesses can stimulate
4. Recession refers to a period when the economy
5. A government deficit occurs when government expenditures are greater than the revenue collected in a given year. A government deficit can be defended against a balanced budget policy because:
6. In the long run
7. What are the tools of fiscal policy that governments can use to stabilize an economy?
8. An increased federal budget deficit resulting from a recession can actually help stabilize an economy through transfer payments because an increased budget deficit will ________ transfer payments and thereby ________ the income of some households.
9. Using expansionary policies to combat a recession would
10. During a recession, tax revenues ________ while government transfer payments ________, thereby mitigating part of the adverse effects of a recession and stabilizing the economy.