The Fiscal Policies
This helps close an inflationary gap.
What is contractionary fiscal policy?
The effect it has on the AD/AS graph.
What is shifting the AD graph to the right?
The reason there a reduction in government purchases.
What is correcting the inflationary gap?
The budget deficit.
What is when the government spends more money than they have, leading to debt?
He is married to this.
What is the "game"?
The two types of Fiscal policy.
What is discretionary fiscal policy and Automatic stabilizers?
The reason taxes are lowered when this fiscal policy is enacted.
What is to increase consumption?
The effect it has on budget balance.
what is creating a budget surplus?
This is the solution for a budget deficit.
What is a cyclically balanced budget?
Gives him an elf look.
What are his shoes?
The reason expansionary fiscal policy is used?
What is a recession?
The expansionary fiscal policy creates this in the budget balance.
What is a budget deficit?
The reason it is so hard to pass.
What is the fact taxes go up but none is put towards infrastructure?
The budget surplus.
What is when the government spends less than they make?
His favorite things.
What is to make fun of Marryam with Caleb?
The two types of gaps that (usually) are fixed with fiscal policy
What is a recessionary gap and a inflationary gap
The effect it has on government spending.
What is a increase (in government spending)?
The three lags any fiscal policy encounters.
What is recognition lag, administrative lag. and operational lag.
This is the goal of the public finance for the government.
What is the annually balanced budget?
The most atrocious thing he owns.
What are his elf shoes?
The three ways to implement fiscal policy.
What is changes in government spending, taxes, and government transfers.
Three negative effects it has.
What are rising interest rates, growing trade deficits, and accelerating inflation?
Due to contractionary policy, which way does the AD/AS graph move?
What is AS staying in place and AD shifting to the left?
What is pay down the public debt, reduce taxes, increase gov't expenditures, and increase the social security trust fund?
His favorite student.
Who is Caleb?