Expansionary fiscal policy is used to combat this.
What is a recession?
100
Income, capital gains, dividends, small businesses, payroll, and corporate taxes
What are some types of tax cuts?
100
The parts of GDP.
What are C+G+I+NX?
100
The government gains more of this when it lowers prices or increases government spending
What is debt ?
100
A massive public works project is funded by Congress
What is expansionary?
200
Tax cuts and increasing government spending
What are the two major examples of Fiscal Policy?
200
This increases when taxes are lowered.
What is consumer spending and aggregate demand?
200
A permanent spending law enacted to stabilize the economy
What is non-discretionary policy
200
Creates jobs and alleviates unemployment
What do tax cuts and increased gov spending do?
200
This type of fiscal policy is implemented when attempting to shift the aggregate demand curve to the left.
What is contractionary?
300
This man is responsible for the General Theory of Employment, Interest, and Money
Who is John Maynard Keynes?
300
A permanent taxation law put in place to stabilize the economy
What is non-discretionary fiscal policy
300
This type of spending focuses on military budget.
What is discretionary?
300
These are results of inflationary gaps that haven't been closed by fiscal or monetary policy?
What are asset bubbles?
300
Congress passes a law increasing income tax rates.
What is contractionary?
400
A main tool of fiscal policy that does not directly shift the AD
What is taxes?
400
includes a increases in taxes and a decrease in government spending
What is contractionary fiscal policy
400
When government increases infrastructure spending, this will be purchased from the private sector, causing a ripple effect for employees and businesses.
What are raw materials?
400
Raise taxes and lower government spending
What can the government do to fix inflationary gaps ?
400
Capital gains taxes are cut, leading to increased business investments.
What is expansionary?
500
A period of time where Unemployment is high and factories sit unused.
What is a recessionary gap ?
500
A decrease in taxs and an increases in government spending.
What is expansionary fiscal policy
500
Government may increase spending in this area to increase future productivity.
What is education and training?
500
Fiscal policy occasionally causes this, which is why some would disagree with the use of fiscal policy.
What is a budget deficit?
500
Congress cuts the budget for the National Endowment for the arts.