11/1/23, 9:35 PM
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Quiz # 4: Attempt review
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Dashboard - My courses - BUSD-1008-H22-40195-2023 Fall - Assessments - Quiz # 4
https://myclass.norquest.ca/mod/quiz/review.php?attempt=3717739&cmid=2821557
1/5
11/1/23, 9:35 PM
Started on
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Quiz # 4: Attempt review
Sunday, 29 October 2023, 9:34 PM
State
Finished
Completed on
Sunday, 29 October 2023, 9:47 PM
Time taken
12 mins 34 secs
Grade
9.00 out of 12.00 (75%)
Question 1
Complete
Mark 1.00 out of 1.00
What would be appropriate government action to close an inflationary gap?
a. Use counter-cyclical fiscal policy to decrease aggregate demand.
b. Use counter-cyclical fiscal policy to increase aggregate demand.
c. Use policy to decrease potential GDP.
d. Use policy to decrease aggregate supply.
The correct answer is: Use counter-cyclical fiscal policy to decrease aggregate demand.
Question 2
Complete
Mark 0.00 out of 1.00
If the government used counter-cyclical policy to eliminate an inflationary gap, what should it do?
a. Increase its own spending and tax rates.
b. Increase its own spending or decrease tax rates.
c. Increase its own spending but leave tax rates unchanged.
d. Decrease its own spending and tax rates.
e. Decrease its own spending or increase tax rates.
The correct answer is: Decrease its own spending or increase tax rates.
Question 3
Complete
Mark 0.00 out of 1.00
What can cause an upward (left) shift in the budget line?
a. An increase in government spending.
b. An increase in taxes.
c. A decrease in taxes.
d. An increase in GDP.
The correct answer is: An increase in taxes.
Question 4
Complete
Mark 1.00 out of 1.00
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11/1/23, 9:35 PM
Quiz # 4: Attempt review
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If government spending increases:
a. Graphically, the BL line is unaffected.
b. Government spending and the government's budget are not related.
c. Graphically, the BL line will shift down.
d. Graphically, the BL line will shift up.
The correct answer is: Graphically, the BL line will shift down.
Question 5
Complete
Mark 1.00 out of 1.00
The action of individuals or private institutions buying a newly issued Canada Savings Bond or a treasury bill:
a. is a result of a government budget surplus.
b. decrease the size of the government's debt.
c. is unrelated to both government budget surpluses and deficits.
d. is borrowing by the government to finance a budget deficit.
The correct answer is: is borrowing by the government to finance a budget deficit.
Question 6
Complete
Mark 1.00 out of 1.00
Suppose that the government's total tax receipts are $130, government spending on goods and services is $100
and transfer payments are $40. What are net tax revenues?
a. +$90.
b. +$30.
c. -$10.
d. +$70.
The correct answer is: +$90.
Question 7
Complete
Mark 0.00 out of 1.00
Below is some data for a hypothetical economy:
C = -232 + 0.8Y
XN = 107 - 0.1Y
I = 100
T = 340
G = 340
Refer to the information above to answer this question. At equilibrium GDP, what is the value of Xn?
a. -2
b. -5
2
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Quiz # 4: Attempt review
c. +2
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d. +5
The correct answer is: +2
Question 8
Complete
Mark 1.00 out of 1.00
Refer to the graph above to answer this question. If real GDP is less than Y2, then the budget will be:
a. At equilibrium.
b. Balanced.
c. In a deficit.
d. In a surplus.
The correct answer is: In a deficit.
Question 9
Complete
Mark 1.00 out of 1.00
What is an appropriate reason for the government to borrow money?
a. To inject new spending into the economy.
b. To discourage waste in fiscal affairs.
c. To compensate for a lower bond rating.
d. To encourage foreign ownership of the debt.
The correct answer is: To inject new spending into the economy.
Question 10
Complete
Mark 1.00 out of 1.00
Suppose an economy is operating below Potential Real GDP and the government has a structural deficit equal
to $100 billion. If the total government deficit is equal to $150 billion then the cyclical deficit is equal to:
a. $150 billion.
b. $50 billion.
c. $100 billion.
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Quiz # 4: Attempt review
d. $250 billion.
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The correct answer is: $50 billion.
Question 11
Complete
Mark 1.00 out of 1.00
All of the following, except one would help reduce an inflationary gap. Which is the exception?
a. An increase in tax rates.
b. A increase in government spending
c. A decrease in exports.
d. An increase in interest rates.
The correct answer is: A increase in government spending
Question 12
Complete
Mark 1.00 out of 1.00
When a recessionary gap exists, what should the government do to address the situation?
a. Increase its own spending or decrease tax rates.
b. Increase its own spending and tax rates.
c. Decrease its own spending but leave tax rates unchanged.
d. Decrease its own spending or increase tax rates.
e. Decrease its own spending and tax rates.
The correct answer is: Increase its own spending or decrease tax rates.
Finish review
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Quiz # 3
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