Macroeconomic Aims
Keeping prices steady?
Price Stability
Government's plan for taxes and spending?
Fiscal Policy
Who controls interest rates?
Central Bank
Prices rising fast___?
Inflation
True/False: Deflation is good for savers.
True
Goal for low unemployment?
Full employment
If the government cuts taxes, is that expansionary or contractionary?
Expansionary
Lower interest rates ____ policy
Expansionary
Prices falling___?
Deflation
Who controls interest rates: Government or Central Bank?
Central bank
Making more goods and services each year?
Economic growth
Government reduces spending on schools. What policy?
Contractionary
Central Bank raises rates to fight what?
Inflation
Too much money + not enough goods____?
Inflation
If people are buying less and factories close, is the economy growing or slowing down?
Slowing down
Keeping imports and exports balanced?
Balance of Payments
Tool used in fiscal policy (starts with "T")?
Taxes
Tool for controlling the money supply?
Interest rates
Hyperinflation means prices do what?
Rises VERY VERY fast
When the government pays for new schools or roads, what policy is it using? (Hint:starts with a F)
Fiscal policy
Name two macroeconomic aims.
Growth and Price Stability(……)
What should government do if inflation is too high?
Use contractionary policy
If the Central Bank wants to help the economy, do they LOWER or RAISE interest rates?
Lower
Deflation makes money value do what?
Increase
If prices are too high, should gov't cut spending or spend more?
cut spending