HW: Due Wednesday
Chapter 14, Section 1 – Take Notes
Chapter 15
Section 1 Understanding Fiscal Policy
1) What action does the government take if it wants to contract the economy? What action if it wants to expand?
2) What difficulties can the government face in the process of enacting its fiscal policies for any given year?
3) What political pressures are at play in the budget writing process? What actions are elected officials encouraged to take more often than not?
Section 2 Fiscal Policy Options
4) As the new third sector of the economy (in the circular flow) how does the Keynesian model envision the government’s role in the economy, what problems should it be able to solve related to classical economics?
5) What is the relationship of the multiplier effect and fiscal policy?
6) What makes automatic stabilizers automatic? What are the two main types of automatic stabilizers?
7) Is supply side economics “fair” or does it benefit one part of society more than others?
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