The standardized budget is also called:

1.   ?    actual budget.
2.   ?    cyclical budget.
3.   ?    administrative budget.
4.   ?    full-employment budget.

If the full-employment budget deficit increases from $200 billion to $250 billion and GDP remains constant over the two years,:

1.   ?    fiscal policy is expansionary.
2.   ?    fiscal policy is contractionary.
3.   ?    fiscal policy is neutral.
4.   ?    the tax system is progressive.

If the full-employment budget shows a deficit of about $100 billion and the actual budget shows a deficit of about $150 billion over a several-year period, it can be concluded that there is a:

1.   ?    cyclical deficit.
2.   ?    contractionary fiscal policy.
3.   ?    proportional tax system.
4.   ?    progressive tax system.

The time which elapses between the beginning of a recession or an inflationary episode and the identification of the macroeconomic problem is referred to as a(n):

1.   ?    budget lag.
2.   ?    recognition lag.
3.   ?    operational lag.
4.   ?    administrative lag.

The lag between the time the need for fiscal action is recognized and the time action is taken is referred to as the:

1.   ?    crowding-out lag.
2.   ?    recognition lag.
3.   ?    operational lag.
4.   ?    administrative lag.

What real or potential economic problem is posed by the public debt and its growth?

1.   ?    It can lead the nation to bankruptcy.
2.   ?    It causes expansionary economic policy making.
3.   ?    It may crowd out investment in new capital goods.
4.   ?    It places an unwarranted economic burden on future generations.

An expansionary fiscal policy in the upsloping portion of the aggregate supply curve is:

1.   ?    increased by the net export effect.
2.   ?    decreased by the creation of new money.
3.   ?    increased by the crowding-out effect.
4.   ?    decreased by a rise in the price level.

In the aggregate expenditure model, a downward shift in aggregate expenditures caused by an increase in taxes would be similar to a(n):

1.   ?    increase in aggregate supply.
2.   ?    increase in aggregate demand.
3.   ?    decrease in aggregate demand.
4.   ?    decrease in aggregate demand and increase in aggregate supply.

The net export effect works through international trade to:

1.   ?    increase the effectiveness of expansionary and contractionary fiscal policy.
2.   ?    decrease the effectiveness of expansionary and contractionary fiscal policy.
3.   ?    decrease the effectiveness of expansionary fiscal policy and increase the effectiveness of contractionary fiscal policy.
4.   ?    increase the effectiveness of expansionary fiscal policy and decrease the effectiveness of contractionary fiscal policy.

Which is a reason given by supply-side economists as to why tax cuts should increase aggregate supply?

1.   ?    work incentives will decrease
2.   ?    risk taking will decrease
3.   ?    saving and investment will increase
4.   ?    the net export effect will increase