Supply and Demand
Define supply and demand
Supply- the amount of goods
Demand- how much people want the goods
Provide one example of fiscal policy
Taxes, Stimulus Packages
What part of Government is in charge of monetary policy?
The Federal Reserve
People who voted for ___________ were more concerned about the economy
Trump
Interest Rates have gradually increased
Describe the relationship between supply and demand
As supply increases, demand increases
Which part of government is MOST in control of fiscal policy
Congress. More specifically- House of Representatives.
What does Monetary Policy Control?
Interest Rates
Explain Trump's views on Taxes as it relates to income tax or corporate tax
Trump wanted to keep the Tax and Jobs Act which would keep income taxes low for all income brackets and keep corporate taxes low
What has happened to unemployment since 2021?
Unemployment has gradually decreased
When supply is low, the ____________ of goods is high
Price
Provide a positive consequence of stimulus packages
They provide money for families in need which helps keep the economy afloat
When inflation increases, the Federal Reserve tries to manage this by...
Increasing Interest Rates
Explain Harris's view on Taxes as it relates to income tax
Harris only wanted to maintain the Tax Cuts and Jobs Act for those that earn under $400,000 or the middle and working class.
Why has home prices, gas prices and the cost of air travel increased since 2021?
Inflation
What does a high interest rate for the economy mean as it relates to supply and demand?
A high interest rate often means demand is high as high interest rates are often meant to lower inflation as it makes it harder for people to pay loans and mortgages. When demand is high, so are prices.
Provide a negative consequence of stimulus packages
- They add more to government spending which leads more to a national defecit
-They could lead to inflation due to increased spending
-They tend to benefit the wealthy instead of the poor because the wealthy can save and invest these checks while the poor have to immediately spend on necessities
Correct this statement: "Biden is to blame for interest rates"
The Federal Reserve Controls Interest Rates
Explain the purpose of tariffs
Tariffs are meant to provide a tax on foreign goods (imports) in order to make them more expensive. Governments that impose tariffs often do this to encourage citizens to buy goods from their own countries
What has happened to immigrant visas since 2021?
They have increased
What could be one consequence of high supply and low demand
-Unemployment
-Lower interest rates as people need to be encouraged to spend money in the economy.
Provide both liberal and conservative views on fiscal policy
Liberals want more taxes and government spending as they believe it supports government programs people need and thus, helps stimulate the economy.
Conservatives want less taxes as they believe that it would lead to more people having disposable income which they could spend to contribute to the economy
Interest rates have recently dropped by a .25%, what could this possibly mean for the economy?
Inflation has decreased/there's less spending in the economy
Explain one POSSIBLE consequence (positive or negative) of Trump's ecnomic plans
Positive:
-Corporations may focus more on American industries
-People would have more money to save or spend due to tax cuts
Negative:
-Tariffs will make goods even more expensive, leading to more inflation
-Tariffs may encourage negative reactions from other countries, limiting global trade
-The tax cuts may lead to less government spending. Programs may have to be cut OR the federal government may experience more of a defecit.
Provide a possible solution to an economic problem that has developed in the past 5 years
- Continue to raise interest rates
- Use tax money to provide for affordable housing
-Adjust the work visa process to enourage more permanent work