Government Studies Multiple Questions


1. Social insurance programs are ______.

2. Which of the following is NOT an example of government purchases of goods and services?

3. If the economy is at potential output, and consumption spending suddenly decreases due to a fall in consumer confidence, the appropriate fiscal policy is ______.

4. To close an inflationary gap employing fiscal policy, the government could ______.


5. Government’s efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of _______.

6. Changes in taxes and government transfers shift the aggregate demand curve ______ equal-sized changes in government purchases.

7. The presence of automatic stabilizer in government tax revenue that occurs when GDP rises _______.


8. The budget balance is calculated as ______.

9. The larger the amount of outstanding public debt ______.


10. Implicit liabilities of a government are _______.

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