Answer:
Fiscal policy quick check
1. How does the federal government's fiscal policy affect the U.S. economy?
- The federal government implements tax and spending measures that affect employment, economic growth, and inflation.
2. Which statement explains why contractionary fiscal policy is often not used by the federal government?
- Individual and corporate tax rates increase while spending for social programs decreases, both of which would lead the economy to slow down or contract.
3. What impact does an expansionary fiscal policy action, such as a tax cut, generally have on consumer and business spending?
- spending increases for both businesses and consumers
4. What is considered healthy economic growth for fiscal policy in terms of percent of Gross Domestic Product (GDP) per year?
- 2% to 3%
5. What is cost-benefit analysis?
- Cost-benefit analysis is used to determine whether or not the benefits of a proposed plan are greater than its costs.
Explanation:
These are 100% correct
