The initial purpose of the government budget was to ____________.

state expenditure items of the government and plans for financing its activities
stabilize the economy and set out plans for financing government actions
decrease unemployment
maintain low interest rates

Fiscal policy attempts to achieve all of the following objectives except _________.

economic growth
a stable money supply
price level stability
full employment

When tax revenues exceed expenditures, the government has a _______, and when expenditures exceed tax revenues, the government has a _______.

budget surplus; budget deficit
budget debt; budget surplus
budget deficit; budget surplus
budget surplus; budget debt

The government debt is equal to the _______minus _______.

sum of past deficits; the sum of past surpluses
current surplus; the sum of past deficits
current deficit; the current surplus
sum of past deficits; the current surplus

A fall in income that results in a decrease in tax revenues is an example of ________________.

automatic fiscal policy
lump-sum taxes
a recession
discretionary fiscal policy

An increase in the income tax rate is an example of ___________.

increasing the government deficit
increasing the government debt
lump-sum taxes
discretionary fiscal policy

_______ taxes vary with _______, but _______ taxes do not vary with _______.

Induced; real GDP; lump-sum; real GDP
Lump-sum; real GDP; lump-sum; real GDP
Lump-sum; GDP; induced; GDP
Induced; real GDP; income; real GDP

The amount by which a change in government purchases of goods and services is multiplied to determine the change in equilibrium expenditure that it generates is the ___________________.

goods and services multiplier
slope of the AE curve
increase in real GDP
government purchases multiplier

The lump-sum tax multiplier is ______________.

positive
equal to the induced tax multiplier
between 0 and 1
negative

The balanced budget multiplier is ______________.

between 0 and 1
negative
equal to 1
greater than 1