fiscal policies strategies

Question 1

4 Factors of Production

Answer 1

1. human resources
2. natural resources
3. capital resources
4. entrepeneurship

Question 2

Who determined Fiscal Policy?

Answer 2

U.S. Government

Question 3

What does GDP stand for?

Answer 3

Gross Domestic Product

Question 4

3 goals of Fiscal and
Monetary Policy

Answer 4

1. Stable Prices (2% Goal)
2. Low unemployment rates (5%)
3. Long Term Sustained Economic Growth

Question 5

What happened in 1885?

Answer 5

Interstate Commerce Act

Question 6

4 tools:

Answer 6

1. tax
2. subsidize
3. direct spending
4. regulate

Question 7

GDP Equation

Answer 7

GDP = C + I + G + (X-M)

Question 8

C in Equation:

Answer 8

Personal Consumption(70%)

Question 9

I in Equation:

Answer 9

Gross Investment and Business Investment

Question 10

G in Equation:

Answer 10

Government Purchases

Question 11

(X-M) in Equation:

Answer 11

exports - imports

Question 12

Supply Side economics is known as:

Answer 12

Reaganomics

Question 13

You want the inflation rate to be:

Answer 13

2% is the goal

Question 14

Supply-Side Economics

Answer 14

gives tax breaks to the rich

Question 15

Demand-Side Economics is called:

Answer 15

Keynesian Economics

Question 16

Demand-Side Economics

Answer 16

focuses on change in the economy over the short run and creates more aggregate demand