Economic Management and Policy Concepts

The video explains the CARES Act, a significant economic relief bill, and its impact on individuals and the nation. It discusses monetary and fiscal policy tools, historical examples of fiscal stimulus, and global responses to the 2020 crisis. The video also explores the consequences of national debt and evaluates the effectiveness of economic stimulus measures.

What is the primary purpose of the CARES Act?

• To increase taxes

• To provide economic relief

• To reduce government spending

• To promote international trade

Which two major tools do governments use to manage economic crises?

• Monetary policy and fiscal policy

• Taxation and subsidies

• Trade agreements and tariffs

• Interest rates and inflation

What was the main goal of the Troubled Asset Relief Program (TARP)?

• To promote international trade

• To reduce unemployment

• To increase taxes

• To buy troubled assets from failing banks

How did the American Recovery and Reinvestment Act (ARRA) aim to help the economy?

• By reducing taxes

• By providing temporary relief and increasing spending on infrastructure

• By increasing interest rates

• By promoting international trade

Which country had the largest fiscal stimulus package in 2020?

• Germany

• China

• Italy

• United States

What is a potential consequence of a country having a high national debt?

• Decreased government spending

• Increased international trade

• Higher interest payments

• Lower inflation

What is the long-held economic wisdom regarding national debt and GDP?

• Debt should not exceed 70% of GDP

• Debt should not exceed 30% of GDP

• Debt should not exceed 90% of GDP

• Debt should not exceed 50% of GDP

What are the two main options for a country to manage high national debt?

• Increase spending and reduce taxes

• Promote international trade and reduce tariffs

• Cut spending and raise income

• Increase inflation and reduce interest rates

What factors are helping to keep inflation low, according to experts?

• Decreased international trade and high tariffs

• High interest rates and low GDP

• Technological advances and globalization

• Increased government spending and high taxes

What is the general consensus among economists about the necessity of economic stimulus programs?

• They are unnecessary and harmful

• They are only beneficial in the short term

• They are only useful for developed countries

• They are necessary and help prevent worse situations