Q1. Thomas Moller is an economist for Econometrics Associates. Moller’s supervisor asks him to propose how to reduce the fiscal imbalance. Moller contends that the fiscal imbalance can be reduced by raising income taxes. Moller’s colleague, Melissa Stephens, contends that the fiscal imbalance can be reduced by cutting government promised benefits. Regarding their statements, Moller and Stephens are: Moller Stephens
A) Incorrect Correct B) Correct Correct C) Correct Incorrect
Q2. Which of the following most accurately describes the generational effects of fiscal policy? A) Fiscal imbalances must be corrected in the future by increasing taxes or decreasing government spending, and much of the burden will fall on future generations. B) Fiscal stimulus generates economic activity greater than the amount of the stimulus due to the multiplier effect on future generations. C) Each generation of fiscal policy decisions has unintended effects that require another generation of fiscal policy actions to correct them.
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发表于 2009-1-15 16:37
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