The Tax Cuts of 2001 and 2003 That Came in the Form of Tax Rebate Checks Are Good Examples

[B, 15-16]

The tax cuts of 2001 and 2003 that came in the form of tax rebate checks are good examples of ______fiscal policy

a)non-discretionary

b)discretionary

c)non-conjunctive

d)universally discredited

[A, 15-16]

The tax cuts of 2001 and 2003 that came in the form of tax rebate checks are good examples of

a)fiscal policy

b)monetary policy

c)the fallacy of composition

d)the fallacy that causation and correlation are the same

[A, 15-16]

Using the aggregate supply – aggregate demand model, the tax cuts of 2001 and 2003 that came in the form of tax rebate checks would cause

a)aggregate demand to shift to the right

b)aggregate demand to shift to the left

c)aggregate supply to shift to the right

d)aggregate supply to shift to the left

[A, at the end]

A recent example of the administrative lag came in the form of

a)it taking several months in 2003 for Congress to agree on a specific tax cut package even after they had agreed on having one.

b)it taking only a month or two from the passage of the 2003 tax cut to the issuance to rebate checks

c)it taking until Summer 2003 to recognize that the recession of 2001 ended in December of 2001

d)it taking very little time for the effects of the 2003 rebate checks to have an effect on the economy

[C, at the end]

A recent example of the recognition lag came in the form of

a)it taking several months in 2003 for Congress to agree on a tax cut package even after they had agreed on having one.

b)it taking only a month or two from the passage of the 2003 tax cut to the issuance to rebate checks

c)it taking until Fall 2001 to recognize that the recession of 2001 had started January 2001

d)it taking very little time for the effects of the 2003 rebate checks to have an effect on the economy

[B, at the end]

The operational lag seemingly did not apply in the case of the 2003 tax cut because

a)it took several months in 2003 for Congress to agree on a tax cut package even after they had agreed on having one.

b)it took only a month or two from the passage of the 2003 tax cut to the issuance to rebate checks

c)it took until Fall 2001 to recognize that the recession of 2001 had started January 2001

d)it took until Summer 2003 to recognize that the recession of 2001 ended in December of 2001

[C, at the end]

Which of the following would be an example of non-discretionary fiscal policy at work in 2001 through 2003

a)the tax cuts of 2001 and 2003

b)the 12 separate cuts in interest rates beginning in January 2001

c)the reduction in taxes owed attributable to stock market loss in 2001 and 2002

d)increases in defense spending

[C, at the end]

Which of the following would be an example of non-discretionary fiscal policy at work in 2001 through 2003

a)the tax cuts of 2001 and 2003

b)the 12 separate cuts in interest rates beginning in January 2001

c)the increase in unemployment compensation payments in 2001 through 2003

d)the increases in defense spending

[A, at the end]

Which of the following would be an example of discretionary fiscal policy at work in 2001 through 2003

a)the tax cuts of 2001 and 2003

b)the 12 separate cuts in interest rates beginning in January 2001

c)the increase in unemployment compensation payments in 2001 through 2003

d)the increases in Medicare spending attributable to the aging population

The tax cuts of 2001 and 2003