AP Government 4.9-Ideology and Economic Policy

Which of the following best matches a political ideology with that ideology’s position on the proper role of government in regulating the economy?

• Communitarian—The government should regulate monetary policy but not fiscal policy.

• Libertarian—Government regulation should increase when the economy is in decline.

• Conservative—The government should strictly limit its regulation of the marketplace.

• Liberal—The government should not intervene in economic decision-making.

A member of Congress who advocates for a more Keynesian approach to solving a recession will likely support which of the following policies?

• Lowering taxes on the wealthy to increase business investment

• Doing nothing and letting the recession work itself out

• Increasing federal spending on infrastructure programs

• Increasing interest rates and reducing the money supply

Which of the following illustrates an economic policy most likely supported by an ideologically liberal individual?

• The Federal Reserve increasing interest rates

• Congress increasing the minimum wage

• A bill that would decrease funding for the food stamp program

• A state lowering income taxes to attract businesses

Which of the following statements accurately explains a limitation of the line graph?

• The line graph does not take into account the views of those who identify as moderate.

• It is difficult to tell what the relationship is between ideology and the perception of the Federal Reserve.

• The line graph does not illustrate differences along party lines regarding the perception of the Federal Reserve.

• It is difficult to tell if there is a relationship between the two survey questions on the Federal Reserve.

Which of the following descriptions is the information on the line graph too limited to support?

• The more conservative an individual is, the less likely he or she is to believe that the Federal Reserve helps to stabilize the economy.

• The more liberal an individual is, the more likely he or she is to believe that the Federal Reserve helps stabilize the economy.

• About half of those who identify as very liberal believe that the Federal Reserve helped stabilize the economy.

• Most who identify as very conservative believe that the Federal Reserve should be abolished.

The data in the line graph would be least useful to a researcher interested in finding out which of the following?

• Whether or not there are ideological differences in regards to job approval of the Federal Reserve

• Whether or not there was a decrease in support for the Federal Reserve after the 2008 financial crisis

• The percentage of people who identify as conservative who believe the Federal Reserve caused the 2008 financial crisis

• If the Federal Reserve was an institution broadly supported by liberals