UP:SS10.E.11

Vocabulary

  • fiscal policy
  • Keynesian
  • deficit
  • crowding out effect
  • surplus
  • debt
  • expansionary policy
  • contractionary policy
  • multiplier effect
  • automatic stabilizers

Knowledge

Students know:
  • The role of Congress and the President in promoting economic stability through the use of discretionary fiscal policy.
  • Government spending and taxes act automatically to help stabilize the economy.
  • The two fiscal policy tools: government spending and taxes.

Skills

Students are able to:
  • Determine the specific economic impact of changes in government spending.
  • Determine the specific economic impact of changes in the tax rate.
  • Determine the appropriate fiscal policy to promote employment.
  • Determine the appropriate fiscal policy to combat inflation.

Understanding

Students understand that:
  • Taxes and government spending impact the overall economy, both through discretionary fiscal policy and automatic stabilizers.
  • Fiscal policy tools are used to promote employment and economic growth.
  • Fiscal policy tools are used to combat inflation.
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