Political Economy 2021

Government use of taxing and spending to stabilize the economy

• Monetary policy

• Fiscal policy

A plan for the federal government's revenues and spending for the coming year

• Monetary policy

• Tax

• Federal Budget

higher spending and tax cuts

• Expansionary fiscal policy

• Contractionary monetary policy

• Contractionary fiscal policy

government decisions that encourage economic growth are considered expansionary policies

• True

• False

the buying and selling of government securities (bonds) to alter the supply of money

• Free market operations

• Open market operations

• Policy market operations

who implements Fiscal Policy?

• President/Congress

• Central Bank

• Both

Is the Monetary or Fiscal policy set through laws?

• Monetary

• Fiscal

A period during which total production and total employment are decreasing.

• Expansion

• Recession

Economic growth is the ability of the economy to produce increasing quantities of goods and services

• True

• False

what is GPD?

• how long it takes a countrie to get a certain amount of money

• the total money value the goverment needs to pay in a countries

• the total market value of the goods and services in an economy