Fiscal Policy

During a recession the federal gov't should use what type of fiscal policy?

• Expansionary

• Contractionary

During periods of high inflation the federal gov't should use what type of fiscal policy?

• Expansionary

• Contractionary

To fight a recession the federal gov't should...

• Raise taxes, lower gov't spending

• Lower taxes, raise gov't spending

• Raise taxes, raise gov't spending

• lower taxes, lower gov't spending

To fight inflation the federal gov't should...

• Raise taxes, lower gov't spending

• Lower taxes, raise gov't spending

• Raise taxes, raise gov't spending

• lower taxes, lower gov't spending

If the federal gov't raises gov't spending AD will...

• Increase

• Decrease

If the federal gov't lowers gov't spending AD will...

• Increase

• Decrease

If the federal gov't lowers taxes AD will...

• Increase

• Decrease

If the federal gov't increases taxes AD will...

• Increase

• Decrease

Gov't spends more than in brings in in taxes.

• Budget surplus

• Budget Deficit

• National Debt

Gov't brings in more taxes than in spends.

• Budget surplus

• Budget Deficit

• National Debt