Fiscal 101
What does the "G" stand for in GDP
What is Gross?
If the government lowers your taxes, do you have more or less money to spend at the mall?
What is More money?
What does the "D" stand for in GDP
When the economy is doing poorly and many people are out of work, it is called a what?
What is A Recession?
If the government wants to slow down the economy, should they raise or lower taxes?
What is Raise Taxes?
Does "Expansionary" policy usually make the National Debt go up or down?
What is Up?
What is the term for the money the government collects from your paycheck?
What is Income Tax?
Fiscal policy is a tool used by the ___________ to influence the economy.
What is the government?
What does the "P" stand for in GDP
What is product?
While Fiscal Policy is handled by Congress, this "other" type of policy handles the money supply and is managed by the Federal Reserve.
What is Monetary Policy?
Aside from raising taxes, a government can contract the economy by directly reducing its own spending on these items.
What are government Purchases, or good and services?
00When the government spends more than it brings in, do they have a deficit or a surplus?
What is a deficit?
If the government is running a budget deficit, where do they get the extra money to pay for their spending?
What are loans?
While contractionary fiscal policy uses tax and spending, which part of the government uses open-market operation and interest rates to slow it down.
What is the federal reserve?
When a government runs a budget surplus for a contractionary policy, it uses the extra funds to buy back bonds.
What is national debt?