Use this photo to answer the adhering to question. When the economy is operating at suggest C, the UNITED STATE Congress is the majority of likely to follow
expansionary fiscal plan
contractionary fiscal policy
expansionary financial policy
contractionary financial plan
Concern 2 (Multiple Choice Worth 5 points)
<04.02 MC>Public DomainDuring a cold winter, there is a natural-gas shortage. The government sets a price ceiling on natural gas so that people deserve to proceed to afford heating. If the price ceiling remains in impact, what will happen?
Quantity demanded will exceed the amount gave.
Quantity demanded will certainly equal the amount provided.
Quantity demanded and also provided will certainly reach price equilibrium.
Quantity demanded will be reduced than the quantity supplied.
Inquiry 3 (Multiple Choice Worth 5 points)
<04.05 HC>The nation of Lilliput has low joblessness and high consumer spfinishing, and small businesses are growing. However, prices are founding to climb throughout the economy. What must Lilliput's federal government execute to prevent inflation from happening?
Lower the revenue tax, which gives citizens less money to spfinish, and buy services from civilian-owned businesses, which creates even more tasks.
Lower the earnings tax, which provides citizens even more money to spend, and buy even more solutions from civilian-owned businesses, which creates more tasks.
Raise the income taxes, which offers citizens less money to spfinish, and speak buying solutions from civilian-owned businesses, which eliminates jobs.
Raise the income taxes, which provides citizens less money to spfinish, and also buy more solutions from civilian-owned businesses, which creates even more work.
Question 4 (Multiple Choice Worth 5 points)
<04.01 MC>The inflation price is increasing and also unemployment is decreasing. The economy is most likely in
Question 5 (Multiple Choice Worth 5 points)
<04.04 MC>Buying securities in open up sector operations might promote economic expansion because
the U.S. Congress promises the worth of federal government securities
the U.S. Congress allows the securities to be supplied for business growth
this activity rises banks' cash, enabling for even more loans and investment
this action decreases banks' cash, staying clear of riskies investment actions
Inquiry 6 (Multiple Choice Worth 5 points)
<04.02 MC>Why carry out federal governments regulate herbal monopolies?
To allow just specific consumers to have actually accessibility to products and also solutions
To have accessibility to the sources as soon as nationwide security is at threat
To prevent prices from increasing too high and also to increase effectiveness
To prevent single service providers from proceeding to conquer a market
Inquiry 7 (Multiple Choice Worth 5 points)
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In the 2000s, Venezuelan President Hugo Chàvez instituted economic policies that brought about smuggling and hoarding of food. What did Chàvez execute to produce this actions, and which zone (stood for by a letter) on the graph represents the result?
Chàvez collection a price floor (letter A), which resulted amount gave exceeding amount demanded for food.
Chàvez collection a price ceiling (letter B), which brought about a boost in supply and also demand also for food.
Chàvez collection a price ceiling (letter C), which resulted in quantity demanded exceeding quantity offered for food.
Chàvez collection a price floor (letter D), which caused a decrease in the supply and also demand also for food.
Question 8 (Multiple Choice Worth 5 points)
© 2013 FLVS
In the diagram above, what will take place if the government sets the minimum wage at Point B?
Tbelow will certainly be a shortage of workers.
Tright here will certainly be a surplus of employees.
The minimum wage will certainly rise to fulfill equilibrium.
The minimum wage will certainly loss to meet equilibrium.
Concern 9 (Multiple Choice Worth 5 points)
<04.05 MC>Which of these can result from lessened federal spending?
Advances in the space program
Fewer social programs
Increased national debt
More government regulation
Inquiry 10 (Multiple Choice Worth 5 points)
<04.05 MC>The government increases taxes. What can be a reason for this change in fiscal policy?
A deficit due to enhancing nationwide public transportation
A deficit as a result of even more monies flowing in from investors
A excess because of greater quantities of earnings from exports
A surplus because of even more government spending on building roadways
Question 11 (Multiple Choice Worth 5 points)
<04.05 LC>The build-up of years of spfinishing more money than is gathered in revenues over a number of years creates a budget
Question 12 (Multiple Choice Worth 5 points)
<04.03 MC>Crmodify unions and also various other depository organizations differ from member financial institutions of the Federal Reserve greatly in that they
are exempt from federal oversight
are not topic to regulation
carry out not have actually stock in Federal Reserve Banks
serve a nationwide customer base
Concern 13 (Multiple Choice Worth 5 points)
<04.02 LC>Which is an instance of a herbal monopoly?
A agency that enters the sector and also requires new infrastructure
A team of service providers that very own all the sources of production
A milk product that is developed by multiple companies
A single resource for electrical energy in your neighborhood
Concern 14 (Multiple Choice Worth 5 points)
© 2013 FLVS
In the diagram over, what will certainly take place if the federal government sets the price for potatoes at point A?
There will certainly be a shortage of potatoes.
There will certainly be a surplus of potatoes.
The price of potatoes will climb to satisfy equilibrium.
The price of potatoes will certainly fall to accomplish equilibrium.
Concern 15 (Multiple Choice Worth 5 points)
<04.03 LC>Which of the following is a function of the Federal Reserve System Board of Governors?
Holds stock in the Federal Reserve Bank
Communicates through government leaders
Supervises regional bank operations
Provides organization to financial institutions and also the U.S.
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Concern 16 (Multiple Choice Worth 5 points)
<04.05 MC>How does the UNITED STATE government slow-moving financial growth?
By decreasing taxes and also decreasing spending
By decreasing taxes and increasing spfinishing
By boosting taxes and decreasing spending
By raising taxes and also increasing spfinishing
Concern 17 (Multiple Choice Worth 5 points)
<04.03 MC>Federal Reserve Banks straight influence the nationwide economy by
administering consumer defense legislations
increasing and decreasing the money supply
providing oversight and also solutions for financial organizations
raising and also lowering interest prices
Question 18 (Multiple Choice Worth 5 points)
<04.01 MC>Which of the complying with scenarios generally comes prior to a period of financial contraction?
Concern 19 (Multiple Choice Worth 5 points)
<04.02 MC>Which of these is the result of a government-regulated natural monopoly?
Fewer pricing plans and also choices for the customer
Greater number of service disruptions
Multiple installations of gas, water, and also electrical lines
Unreasonably high prices because of absence of competition
Question 20 (Essay Worth 5 points)
<04.04 MC>Explain just how the Federal Reserve may usage the discount price and also the reserve necessity to increase the money supply. What influence should these actions have actually on employment and also why?