Chapter 15 Notes: Fiscal Policy

Chapter 15: Fiscal Policy

Multiple Choice

Who is responsible for conducting fiscal policy?

• The Federal Reserve

• Congress and the President

Fill in the Blanks

How does the government pay for its spending? (Trillions of dollars of spending!)

Match

Match the following!

• Keynesian Economics

• What day of the week is today?

• Supply-Side Economics

Focus on taxation/government spending

Tuesday!

Focus on increasing production of goods

• Focus on taxation/government spending

• Tuesday!

• Focus on increasing production of goods

Multiple Choice

According to Keynesian Economics, what was the best way to stimulate economic growth?

• Increase aggregate supply

• Decrease aggregate supply

• Increase consumer spending (aggregate demand)

• Decrease consumer spending (aggregate demand)

Match

Match the following - Keynesian Economics

• During a contraction

• What month is it?

• During the peak (inflation)

Increase government spending

September!

Decrease government spending

• Increase government spending

• September!

• Decrease government spending

Multiple Choice

When the federal government distributed stimulus checks in during the pandemic in 2020, was that an example of an increase or decrease in government spending?

• Increase

• Decrease

Multiple Choice

Which of the following would a "supply-sider" NOT recommend to help businesses to produce more goods?

• Deregulation for businesses

• Lowering taxes for businesses

• Increasing regulations for businesses to follow

• Reducing interest rates for business loans