Introduction to Fiscal Policy Practice Questions | Marginal Revolution University

Learn Economics
Teach High School
Teach University

About Us
We're Hiring
Donate
Student Account
Educator Account
Contact Us

Join Our Community of Econ Nerds

Follow us

Courses See all

Principles of Economics: Microeconomics

Principles of Economics: Macroeconomics

Mastering Econometrics

Money Skills

Development Economics
Series See all

Everyday Economics

Nobel Conversations

Economists in the Wild

Women in Economics

Econ Duel
Interactive Practice See all

Supply and Demand

GDP

Trade

Inflation
The Best Econ News Articles

Find the perfect article to explain any econ concept—or sign up for weekly email updates!
Learn More

Free High School Teacher Trainings

Teaching techniques, resources, and professional development credit! Everything you need to make economics fun and engaging for your students.
Learn More
Learn about our mission
High School Teaching Resources See all

By Course:

High School Economics

AP Microeconomics

AP Macroeconomics

Personal Finance

By Type:

Unit Plans

Lesson Plans

Interactive Practice

Assessments
University Teaching Resources See all

By Course:

Principles of Microeconomics

Principles of Macroeconomics

Mastering Econometrics

Development Economics

By Type:

Assessments

Interactive Practice

Lesson Plans

Assignments

Donate
Student
Educator

Practice Questions

Introduction to Fiscal Policy Practice Questions

For the following scenarios, identify what type of fiscal policy phenomenon is being described.

1. The government hires 2000 workers for new infrastructure projects. Over half of the newly hired construction workers, however, were employed in other sectors of the economy and quit their jobs to take this better paying opportunity. *

a. Expansionary fiscal policy.

b. Contractionary fiscal policy.

c. Crowding out.

d. Fiscal multiplier.

e. a and c only.

f. a and d only.

2. The government increases taxes on corporations. *

a. Expansionary fiscal policy.

b. Contractionary fiscal policy.

c. Crowding out.

d. Fiscal multiplier.

e. a and c only.

f. a and d only.

3. During a recession, the government increases spending by $300B, which in turn increases GDP by $350B. *

a. Expansionary fiscal policy.

b. Contractionary fiscal policy.

c. Crowding out.

d. Fiscal multiplier.

e. a and c only.

f. a and d only.

4. During a recession, the government sends $500 checks to every American family. 70% of American families save the money or use it to pay off their debt. *

a. Expansionary fiscal policy.

b. Contractionary fiscal policy.

c. Crowding out.

d. Fiscal multiplier.

e. a and c only.

f. a and d only.

Skip to Next Lesson

Back to video

Principles of Economics Macroeconomics

Course (86 videos)

GDP

What Is Gross Domestic Product (GDP)?

Interactive Practice

Nominal vs. Real GDP

Practice Questions

Real GDP Per Capita and the Standard of Living

Practice Questions

Practice Questions

The Wealth of Nations and Economic Growth

Basic Facts of Wealth

Practice Questions

Growth Rates Are Crucial

Practice Questions

What Caused the Industrial Revolution?

Practice Questions

Growth Miracles and Growth Disasters

Practice Questions

The Importance of Institutions

Practice Questions

Geography and Economic Growth

Practice Questions

The Puzzle of Growth

Practice Questions

Growth, Capital Accumulation, and the Economics of Ideas

Introduction to the Solow Model

Practice Questions

Physical Capital and Diminishing Returns

Practice Questions

The Solow Model and the Steady State

Practice Questions

Office Hours: The Solow Model

Practice Questions

Human Capital and Conditional Convergence

Practice Questions

The Solow Model and Ideas

Practice Questions

Office Hours: The Solow Model: Investments vs. Ideas

Practice Questions

The Economics of Ideas

Practice Questions

Patents, Prizes, and Subsidies

Practice Questions

TED Talk: How Ideas Trump Crises

The Idea Equation

Practice Questions

Savings, Investment, and the Financial System

Saving and Borrowing

Practice Questions

What Do Banks Do?

Practice Questions

Intro to Stock Markets

Practice Questions

Intro to the Bond Market

Practice Questions

Office Hours: The Bond Market

Practice Questions

Four Reasons Financial Intermediaries Fail

Practice Questions

The Great Recession

Practice Questions

Personal Finance

How Expert Are Expert Stock Pickers?

Practice Questions

Can You Beat the Market?

Practice Questions

Investing: Why You Should Diversify

Practice Questions

Who Is More Rational? You or the Market?

Practice Questions

Econ Duel: Rent or Buy?

Unemployment and Labor Force Participation

The Economics of Choosing the Right Career

Practice Questions

Defining the Unemployment Rate

Practice Questions

Is Unemployment Undercounted?

Practice Questions

Frictional Unemployment

Practice Questions

Structural Unemployment

Practice Questions

Cyclical Unemployment

Practice Questions

Labor Force Participation

Practice Questions

Practice Questions

Women Working: What’s the Pill Got to Do With It?

Practice Questions

Inflation and Quantity Theory of Money

Zimbabwe and Hyperinflation: Who Wants to Be a Trillionaire?

Practice Questions

Measuring Inflation

Interactive Practice

Quantity Theory of Money

Practice Questions

Causes of Inflation

Practice Questions

Costs of Inflation: Price Confusion and Money Illusion

Practice Questions

Costs of Inflation: Financial Intermediation Failure

Practice Questions

Interactive Practice

Inflation Throughout the Ages: What Would You Do?

Office Hours: Costs of Inflation

Practice Questions

Why Governments Create Inflation

Practice Questions

Business Fluctuations

Intro to Business Fluctuations

Practice Questions

The Aggregate Demand Curve

Practice Questions

The Long-Run Aggregate Supply Curve

Practice Questions

Practice Questions

The Short-Run Aggregate Supply Curve

Practice Questions

Changes in Velocity

Practice Questions

Understanding the Great Depression

Practice Questions

Office Hours: Using the AD-AS Model

Practice Questions

Office Hours: Multiple Shocks with the AD-AS Model

Practice Questions

Business Cycle Theories

Game of Theories: The Keynesians

Practice Questions

Game of Theories: The Monetarists

Practice Questions

Game of Theories: Real Business Cycle

Practice Questions

Game of Theories: The Austrians

Practice Questions

Game of Theories: The Great Recession

Practice Questions

Monetary Policy and the Federal Reserve

Monetary Policy and the Fed

Practice Questions

The U.S. Money Supplies

Practice Questions

The Money Multiplier

Practice Questions

How the Fed Worked: Before the Great Recession

Practice Questions

Interactive Practice

How the Fed Works: After the Great Recession

Practice Questions

The Federal Reserve as Lender of Last Resort

Practice Questions

Monetary Policy: The Best Case Scenario

Practice Questions

Monetary Policy: The Negative Real Shock Dilemma

Practice Questions

Interactive Practice

When the Fed Does Too Much

Fiscal Policy

Introduction to Fiscal Policy

Practice Questions

Fiscal Policy: The Best Case Scenario

Practice Questions

The Limits of Fiscal Policy

Practice Questions

The Dangers of Fiscal Policy

Practice Questions

Fiscal Policy and Crowding Out

Practice Questions

Interactive Practice

Exam

Principles of Economics: Macroeconomics

We're Hiring!
Register
Login
Terms of Use

Follow Us

Twitter
Youtube
facebook