Exploring Fiscal and Monetary Policy Actions

The video introduces AP Macro students to a series of instructional videos, focusing on fiscal and monetary policy in the short run. It reviews the Aggregate Demand and Aggregate Supply model, explains stabilization policies, and provides tips for tackling free response questions. The session concludes with a summary and a homework assignment.

What is the primary goal of AP Macroeconomics videos?

• To introduce students to basic economics

• To prepare students for the AP exam in May

• To focus on microeconomic principles

• To provide entertainment through economics

Which body implements fiscal policy in the United States?

• Congress and the President

• The Supreme Court

• State Governments

• The Federal Reserve

What is the most commonly used tool by the Federal Reserve?

• Reserve requirement

• Open market operations

• Interest rate adjustments

• Discount window lending

During a recession, what type of policy is typically appropriate?

• Neutral policy

• Expansionary policy

• No policy change

• Contractionary policy

What does a shift to the right in the aggregate demand curve indicate?

• Decrease in overall demand

• Increase in overall demand

• Stagnation in economic growth

• Decrease in price levels

What is the effect of an open market sale of bonds on interest rates?

• Interest rates become negative

• Increase in interest rates

• No change in interest rates

• Decrease in interest rates

What happens to unemployment when expansionary fiscal policy is implemented?

• It fluctuates unpredictably

• It increases

• It remains constant

• It decreases

What is the outcome when fiscal and monetary policies are applied simultaneously in opposite directions?

• Predictable changes in unemployment

• Indeterminate changes in unemployment

• Immediate economic growth

• Long-term deflation

What concept will be introduced in the next session related to fiscal and monetary policy?

• Crowding out

• Supply and demand

• Price elasticity

• Comparative advantage

What is the homework assignment for the next session?

• Review of the Phillips curve

• Mathematical problems on interest rates

• An essay on macroeconomic principles

• A project on fiscal policies