Fiscal Policy and Economic Concepts

Front

Fiscal policy to increase real GDP when below potential

Back

Increase government purchases

Front

Effect of contractionary fiscal policy on aggregate demand curve

Back

Shifts the aggregate demand curve to the left to close a recessionary gap

Front

Definition of transfer payments

Back

Payments the government makes to households who meet entitlement criteria set by Congress

Front

Examples of government transfer programs

Back

Social Security, Medicare/Medicaid, Unemployment Payments, Food Stamps

Front

Fiscal policy to combat unemployment

Back

Increasing government purchases

Front

True or False: Government can use contractionary fiscal policy to address inflation

Back

True

Front

Policy options for a recessionary gap

Back

List two fiscal policy options to move the economy closer to potential real GDP

Front

Policy options when output exceeds potential GDP

Back

List two fiscal policy options to move the economy closer to potential real GDP