Fiscal Policy A

During a recession, the government should​ (a)   taxes so people have more money to spend.

• lower
• raise
• save
• calculate

Raising taxes will​ (a)   the economy.

• slow down
• speed up
• stimulate

Why would a government reduce spending to help the economy?

• Reducing spending will slow down an economy that is expanding too quickly.

• Reducing spending will speed up an economy that is expanding too quickly.

• Reducing spending will slow down an economy that is in a recession.

Which 2 items below would speed up the economy?

• Lowering taxes

• Increase government spending

• reduce government spending

• Raising taxes

Which items are government tools to manage the economy?

Which items are NOT government tools to manage the economy?

Groups:

(a) Tools

,

(b) not tools

• elections

• corruption

• gov. spending

• taxes