Fiscal Policy Review

How does a government make money?

• Profit

• Taxes

• Selling goods

• Producing a product

SELECT ALL THAT APPY: Which of the following are examples of taxes collected by the government?

• Property

• Sales

• Payroll

• Income

How does a government decide what to spend money on?

• Budget

• Supreme Court decision

• Executive Order

• Speech

Fiscal policy is:

• The use of government spending and revenue collection to influence the economy

• The use of monetary policy by the Fed to influence economy

• When supply exceeds demand

• When the Federal Reserve prints money

The different between deficit and debt is:

• That debt is the total amount of money a government has borrowed

• That debt is the the amount by which a government's expenditures exceed revenues

• That debit is how you use your card to pay for items

• Deficit is when you have more money than you are spending

Which best describes "expansionary fiscal policy"?

• Increasing government spending and lowering taxes

• Decreasing government spending and increasing taxes

• Increasing government spending and increasing taxes

• Decreasing government spending and lowering taxes

Which best describes "contractionary fiscal policy"?

• Increasing government spending and lowering taxes

• Decreasing government spending and increasing taxes

• Increasing government spending and increasing taxes

• Decreasing government spending and lowering taxes

Which fiscal policy would you want to use at point 3?

• Expansionary

• Contractionary

Why would you want to practice contractionary fiscal policy?

• Too much economic growth too fast can lead to inflation

• If the economy is growing too slowly

Who is in charge of managing fiscal policy?

• Elected officials

• Mr. Covington

• Police & firefighters

• Pennywise the Clown from the movie IT