Module 20

Question 1

stabilization policy

Answer 1

the use of government policy to reduce the severity of recessions and reign in excessively strong expansions

Question 2

types of taxes

Answer 2

income, social insurance, coroprate profit, state and local

Question 3

social security

Answer 3

income to elderly, disabled, dependents, and widows

Question 4

medicare

Answer 4

healthcare to people over 65

Question 5

medicade

Answer 5

healthcare for the poor

Question 6

social insurance

Answer 6

government programs to protect families against economic hardship
ex: social security, medicare, medicaid, unemployment insurance, food stamps

Question 7

expansionary fiscal policy

Answer 7

increases AD to avoid recessionary gap via

1) inc in govt purchases
2) cut in taxes
3) inc in govt transfers

Question 8

contractionary fiscal policy

Answer 8

reduces AD to avoid inflationary gap

1) reduction in govt purchases
2) inc taxes
3) reduction in govt transfers

Question 9

types of lag time

Answer 9

1) recognition lag
2) implementation lag
3) impact lag