Econ-6.2 Formative Assessment- Option 1

Categorize

Options (8)

Can change Income Taxes

Run by the Federal Government (Congress and the President)

Has 4 Tools to regulate the economy

Can Chnage Regulations on Production- Which causes AS to shift

Can Change Government Spending which causes AD to shift

Controled by the Federal Reserve, which is the Central Bank of the US

Tools are used to change the money supply

Tools can cause ONLY the AD curve to shift

Categorize each characteristic under the correct type of policy: Monetary Policy or Fiscal Policy

Monetary Policy

Fiscal Policy

Categorize

Options (8)

Increase Government Spending

Increase the Money Supply

Decrease Taxes

Increase Taxes

Decrease Government Spending

Decrease the Money Supply

Decrease Regulations on Production

Decrease Taxes on Production

Catergorize each type of the following specific monetary and fiscal policy actions as increaseing AD, decreasing AD or Increase AS.

Increasing AD

Decreasing AD

Increasing AS

Match

Match each specific type of policy action to the proper expansionary or contractionary policy.

• Expansionary Fiscal Policy

• Supply-Sind Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Fiscal Poplicy

• Contractionary Monetary Policy

Decrease Taxes

Increase Gov't Spending

Lower Taxes & Regulations on Production

Increase the Money Supply

Increase Taxes

Decrease Gov't Spending

Decrease the Money Supply

• Decrease Taxes

  Increase Gov't Spending

• Lower Taxes & Regulations on Production

• Increase the Money Supply

• Increase Taxes

  Decrease Gov't Spending

• Decrease the Money Supply

Audio Response

Make a recording identifying if the following statement is True or False AND explaining your response:

Statement- Monetary Policy is best used to solve Stagflation while Supply-Side Fiscal Policy should NEVER be use to attempt to solve Stagflation.

Open Audio Recorder

Dropdown

Identify the correct answer to each of the prompts given based on this scenario:

The Real GDP Growth Rate is 6.4%; Unemployment is at 4.2%; & the Rate of Inflation is now at 3.7%.

Economic Inefficiency:​

Select answer

Specific Fiscal Policy Action that should be taken: ​

Select answer

Specific Monetary Policy Action that should be taken:​

Select answer

Drag and Drop

Identify the correct answer to each of the prompts given based on this image shown:



Economic Inefficiency:​ ​

Placeholder

Specific Fiscal Policy Action that should be taken: ​​

Placeholder

Specific Monetary Policy Action that should be taken: ​

Placeholder

​

Drag these tiles and drop them in the correct blank above

Stagflation

Decrease regulations on production

No action should be taken

Increase taxes

Decrease the money supply

Recessionary Gap

Inflationary Gap

Multiple Choice

Slides 14, 15 and 16 are all related to the same scenario.

Based on the scenario below, which curve (AD or AS) will shift AND in which direction (Left or Right) because of the specific action taken.

Scenario: Everything else remaining constant, the economy is going through a significant economic slowdown but with significant inflation as well. The president and congress act quickly to decrease regulations and taxes on production.

• AD shifts Left

• AS shifts Right

• AD Shifts Right

• AS shift Left

Multiple Choice

Slides 14, 15 and 16 are all related to the same scenario.

Based on the scenario below, Identify which of the AD/AS models provided shows the proper shift (which match your answer on slide 15).

Scenario: Everything else remaining constant, the economy is going through a significant economic slowdown but with significant inflation as well. The president and congress act quickly to decrease regulations and taxes on production.

• Graph 1

• Graph 2

• Graph 3

Multiple Choice

Slides 14, 15 and 16 are all related to the same scenario.

Based on the scenario below, Identify the change that will occur in PRICE LEVEL, REAL GDP & UNEMPLOYMENT based on your responses from slides 14 and 15.

Scenario: Everything else remaining constant, the economy is going through a significant economic slowdown but with significant inflation as well. The president and congress act quickly to decrease regulations and taxes on production.

• Price Level Increases;

  Real GDP Decreases;

  Unemployment Increases

• Price Level Increases;

  Real GDP Increases;

  Unemployment Decreases

• Price Level Decreases;

  Real GDP Increases;

  Unemployment Decreases

• Price Level Decreases;

  Real GDP Decreases;

  Unemployment Increases