Question

 QUESTIN 13

 Fiscal policy is defined as the intentional use of the government's

 A. Judicial power to tax and spend to alter aggregate demand to improve the international balance to trade. 

 B. Power to tax and spend to alter aggregate demand to quickly achieve the full employment level of output. 

 C. Power to tax and spend to achieve a balanced budget.

 D. Power to tax and spend to alter aggregate supply to quickly achieve the full employment level of output.

 QUESTIN 14

 Which of the following is a goal of monetary policy?

 A. Maintain full employment.

 B. Promote faster long-term economic growth.

 C. Keep inflation in check.

 D. All of the choices are correct.

 QUESTIN 15

 A decrease in the incomes of the countries that purchase American-made products will cause a(n)

 A. Decrease in aggregate demand.

 B. Decrease in aggregate supply.

 C. Increase in aggregate supply.

 D. Increase in aggregate demand.

 QUESTIN 16

 Which of the following is expansionary fiscal policy?

 A. Increasing federal spending on renovating college campuses.

 B. Building a new interstate highway.

 C. Sending taxpayers a $1,200 CVID-19 relief check.

 D. All of the answers are correct.

 

Answer 1

13) Fiscal policy is the intentional use of the government's power to tax and spend to alter aggregate demand to quickly achieve the full employment level of output. Fiscal policy aims to achieve full employment in the economy by influencing the aggregate demand in the economy. Hence the answer is option (B).

14) The goals of the monetary policy are ensuring full employment, economic growth and price stability in the economy. Hence the answer is option (D).

15) A decrease in the income of the countries that purchase American made products will reduce the demand for American made products and as a result it will lead to a fall in exports of America and lead to fall in aggregate demand. Hence the answer is option (A).

16) All the answers are correct as all answers shows an increase in government spending and thus is an expansionary fiscal policy example. Hence the answer is option (D).