Economics Unit 4 (Macro Policies)

____________________ is the use of government spending and revenue collection to influence the economy.

• fiscal policy

• monetary policy

• expansionary policy

• contractionary policy

The fiscal policy that encourages economic growth is _____________________. During this time, there is higher spending and tax cuts.

• fiscal policy

• monetary policy

• expansionary policy

• contractionary policy

The fiscal policy that reduces economic growth is ______________________. During this time, there is lower spending and higher taxes.

• fiscal policy

• montary policy

• contractionary policy

• expansionary policy

Implementing taxes and spending money helps to automatically ______________________.

• stabilize the economy

• alleviate poverty

• raise inflation

• lower unemployment

What are the 3 main goals of fiscal policy?

• price stability

• full employment

• economic growth

• economic stability

_______________________ says that government should increase spending to spark demand and help the economy.

• Keynes

• Smith

• Marx

• Betterton

How the Federal Reserve influences the supply of money and brings the nation out of either a recession or inflationary period is ______________________.

• fiscal policy

• monetary policy

• expansionary policy

• contractionary policy

The _________________is a system of all nationally-chartered and most state chartered banks that influence and control the economy and the money supply. (Select all that apply)

• Federal Monetary Policy

• the FED

• Government spending

• Federal Reserve

What does the Federal Reserve do? (Select all that apply)

• issues paper money

• deals with government bonds

• raises taxes when needed

• banker for federal government

The FED can speed up the economy or slow it down by _____________________.

• adjusting the money supply

• taxing the ultra rich

• creating government jobs

• creating new government programs