QCE Economics: Fiscal & Monetary Policy

Froggy Jumps

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Quiz on fiscal and monetary policy basics

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otis

Australia

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QCE Economics: Fiscal & Monetary Policy


Froggy Jumps QCE Economics: Fiscal & Monetary PolicyVersion en ligne Quiz on fiscal and monetary policy basics par otis 1 What is fiscal policy? a The central bank's control of interest rates. b The exchange rate management by the government. c The use of government spending and taxation to influence economic activity, growth, and stabilisatio 2 Who controls fiscal policy? a The Australian Government (Treasurer / Parliament). b The Reserve Bank of Australia. c The Australian Securities and Investments Commission. 3 What is expansionary fiscal policy? a ↑ Government spending or ↓ taxes to boost aggregate demand during low growth or recession. b ↓ Government spending or ↑ taxes to slow demand. c Maintaining budget balance without changes in spending or taxes. 4 What is contractionary fiscal policy? a Maintaining the status quo with no policy change. b ↓ Government spending or ↑ taxes to reduce aggregate demand and inflationary pressure. c ↑ Government spending and ↓ taxes to stimulate the economy. 5 Main fiscal tools? a Government spending, taxation, transfer payments. b Interest rates, money supply, exchange rate. c Regulatory quotas and tariffs. 6 What does a budget deficit indicate? a Budget balance with no deficit or surplus. b Contractionary stance (revenue > spending). c Expansionary stance (spending > revenue). 7 What does a budget surplus indicate? a Expansionary stance (spending > revenue). b Contractionary stance (revenue > spending). c Balanced budget with equal revenue and spending. 8 Strengths of fiscal policy? a Purely automatic with no government discretion. b Direct impact on AD, strong multiplier effect, can target sectors or regions. c Immediate accuracy of price level but slow growth. 9 Weaknesses of fiscal policy? a Always reduces unemployment immediately. b No impact on the economy and instant results. c Time lags, political influence, can increase national debt. 10 Fiscal policy example? a Central bank lowering the cash rate only. b Government increases infrastructure spending to stimulate jobs and growth. c Selling government bonds to reduce deficits without affecting jobs. 11 What is monetary policy? a The government's control of spending and taxation. b The RBA’s control of interest rates (cash rate) to influence inflation, employment, and growth c The BIS's management of international reserves.

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QCE Economics: Fiscal & Monetary Policy

Froggy Jumps

À propos de cette activité

Créé par

Téléchargez la version pour jouer sur papier

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QCE Economics: Fiscal & Monetary PolicyVersion en ligne

par otis

What is fiscal policy?

Who controls fiscal policy?

What is expansionary fiscal policy?

What is contractionary fiscal policy?

Main fiscal tools?

What does a budget deficit indicate?

What does a budget surplus indicate?

Strengths of fiscal policy?

Weaknesses of fiscal policy?

Fiscal policy example?

What is monetary policy?