Unit 8: Fiscal Policy

Open Ended

Discuss two ways the federal government promotes economic growth and stability. Only use your notes to answer.

Match

Match the terms about fiscal policy.

• The federal government is able to influence the economy by its spending, taxing, and b

• these are issued by governments and they pay a fixed interest rate to investors who buy them

• the total owed by the government

• has the goal of stimulating the economy to create more growth

• has the goal of slowing economic growth

Fiscal Policy

bonds

public debt

expansionary policy

contractionary policy

• Fiscal Policy

• bonds

• public debt

• expansionary policy

• contractionary policy

Open Ended

The U.S. economy is often measured by looking at two key factors. What are those factors and what do they measure?

Open Ended

What is one shortcoming of fiscal policy?