Question : The process of increasing government spending and/or decreasing taxes in order to stimulate economic growth is known as:

Option 1: Fiscal austerity

Option 2: Fiscal stimulus

Option 3: Fiscal responsibility

Option 4: Fiscal consolidation

Question : The process of increasing the money supply and/or lowering interest rates in order to stimulate economic growth is known as:

Option 1: Fiscal policy

Option 2: Monetary policy

Option 3: Budgetary policy

Option 4: Industrial policy

Question : Which policy measures are generally used to reduce unemployment in an economy?

Option 1: Expansionary fiscal and monetary policies

Option 2: Contractionary fiscal and monetary policies

Option 3: Structural and supply-side policies

Option 4: None of the above

Question : Expansionary fiscal policy involves:

Option 1: Decreasing government spending and increasing taxes
  

Option 2: Increasing government spending and increasing taxes
  

Option 3: Decreasing government spending and decreasing taxes

Option 4: Increasing government spending and decreasing taxes

Question : The process of increasing taxes and/or decreasing government spending in order to slow down an overheating economy is known as:

Option 1: Fiscal austerity

Option 2: Fiscal stimulus

Option 3: Fiscal responsibility

Option 4: Fiscal consolidation