Ohio American Government Standard #23 and #24 Fiscal Policy

Front

Government spending and taxing does not produce immediate results.

Back

True

Front

Expansionary policies could result in inflation and contractionary policies could result in recession.

Back

True

Front

Fiscal policy is

Back

decisions the government makes to fight inflation

Front

How does the government typically handle taxes and interest rates during a recession?

Back

It lowers both taxes and interest rates.

Front

If the government raises interest rates, the amount of money the typical consumer has

Back

decreases

Front

If the government lowers interest rates, consumer spending typically

Back

increases

Front

If the State of Ohio implements a new form of sales tax, what would happen to the spending habits of most consumers?

Back

They would spend less.

Front

One benefit of an increase of taxes that consumers pay could be: an increase in consumer spending, the local grocery store will see an increase of profits, more citizens receiving services from the government.

Back

more citizens receiving services from the government.

Front

Who proposes the national budget?

Back

Executive branch

Front

Define "aggregate demand".

Back

the amount of goods and services in the economy that will be purchased at all possible price levels