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

contraction

development

a optimal

a tstormy

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)

<04.02 HC>

© 2013 FLVS

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)

<04.02 MC>

© 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

debt

deficit

excess

reversal

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)

<04.02 MC>

© 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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Treasury

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?

Decreasing inflation

High unemployment

Low GDP

Peak production

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?