AP Macroeconomics Government Budgets and Fiscal Policy — practice questions
18 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice AP Macroeconomics Government Budgets and Fiscal Policy in the app →When the federal government spends more money than it receives in taxes in a year, it runs a:When the government receives more money in taxes than it spends in a year, it runs a:If government spending and taxes are equal, the government has a:The income tax is described as which kind of tax?A progressive tax means the tax rates do what as a household's income increases?The Medicare payroll tax is described as which kind of tax?A regressive tax means people with higher incomes pay a share of their income that is:The Social Security payroll tax is proportional only up to which point?A tax imposed on a particular good, such as gasoline or tobacco, is called an:Which taxes are described as providing smaller shares of federal revenue?Discretionary fiscal policy occurs when the government passes a new law that explicitly changes:Expansionary fiscal policy is described as shifting aggregate demand in which direction?Contractionary fiscal policy is described as shifting aggregate demand in which direction?Which model is described as useful in judging whether expansionary or contractionary policy is appropriate?The very large budget deficit in 2009 is attributed to a combination of discretionary policy and:The standardized employment deficit is described as eliminating the impact of:A tax that is proportional at low incomes but regressive above a wage limit describes the:An economy in recession would call for which kind of fiscal policy under the aggregate demand model?