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True or False
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1
The national debt is the sum of the federal government’s past budget deficits less its surpluses.
A)True
B)False
2
The Great Depression ended when World War II began.
A)True
B)False
3
If aggregate demand increases as a result of countercyclical fiscal policy, prices will rise, and GDP will fall.
A)True
B)False
4
Countercyclical fiscal policy aimed at closing an inflationary gap is illustrated graphically by the aggregate demand curve shifting to the left.
A)True
B)False
5
Both net tax revenues and government spending on goods and services are a function of GDP.
A)True
B)False
6
A decrease in government spending on goods and services will shift the budget line up.
A)True
B)False
7
A decrease in autonomous taxes would pivot the NTR line up.
A)True
B)False
8
Countercyclical fiscal policy is aimed at balancing the budget, whereas a balanced-budget fiscal policy is aimed at balancing the economy.
A)True
B)False
9
If government spending on goods and services is increased by exactly the same amount that taxes are increased, the level of GDP will not change.
A)True
B)False
10
In trying to cure a recession, countercyclical fiscal policy may increase a budget deficit.
A)True
B)False





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