Fiscal Policy Study Guide

Front

What are the two ways the government can stabilize the economy?

Back

Fiscal policy and monetary policy

Front

What is the main tool(s) used in fiscal policy to influence the economy?

Back

Government spending and taxation

Front

What is the main reason for a government to implement expansionary policy?

Back

To increase GDP and reduce unemployment

Front

What is an effect of contractionary fiscal policy?

Back

Decrease government spending

Front

What is fiscal policy?

Back

Actions by Congress to stabilize the economy

Front

Which lag time deals with Congress reacting to economic indicators before it's too late?

Back

Recognition

Front

A budget surplus occurs when: Government spending is less than revenue

Back

Government spending is less than revenue

Front

A budget deficit occurs when:

Back

Government spending exceeds revenue

Front

What are the three fiscal policy lag times?

Back

Recognition, administrative, operational

Front

Which lag time deals with Congress taking time to pass legislation?

Back

Administrative