Question : Contractionary fiscal policy involves:

Option 1: Decreasing government expenditure and increasing taxes
 

Option 2: Increasing government expenditure and increasing taxes
  

Option 3: Decreasing government expenditure and decreasing taxes

Option 4: Increasing government expenditure and decreasing taxes

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 government's policy of reducing taxes to stimulate economic growth is known as ____________.

Option 1: Austerity measures

Option 2: Expansionary fiscal policy 

Option 3: Contractionary fiscal policy

Option 4: Supply-side economics

Question : The fiscal policy refers to changes in:

Option 1: Government expenditure and taxation
  

Option 2: Interest rates and money supply
 

Option 3: Exchange rates and trade policies

Option 4: Labor market regulations

Question : The process of allocating government resources in order to meet the goals and objectives of the government is known as:

Option 1: Fiscal policy
 

Option 2: Monetary policy
 

Option 3: Budgetary policy

Option 4: Industrial policy