Ideology and ECONOMIC POLICY [AP Gov Review, Unit 4 Topic 9 (4.9)]

What does fiscal policy primarily involve?

• Decisions about the amount of money in circulation

• Government spending and taxation decisions

• Setting interest rates and reserve requirements

• Regulating international trade agreements

Which economic theory advocates for increased government spending to stimulate the economy, especially during a downturn?

• Supply-side economics

• Monetary policy

• Keynesian economics

• Laissez-faire economics

Which statement best describes the conservative approach to economic policy?

• Favoring extensive government regulation and high taxes to fund social programs

• Advocating for minimal government intervention, lower taxes, and supporting businesses

• Believing that monetary policy is the most effective tool for rapid economic change

• Prioritizing government control over all aspects of the marketplace

What is the primary economic role of government according to libertarian ideology?

• To actively manage the money supply and interest rates

• To implement extensive social welfare programs and public works

• To protect personal property rights and ensure voluntary trade

• To regulate all businesses to prevent monopolies and ensure fair competition