Unpacked Content
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.
Vocabulary
- fiscal policy
- Keynesian
- deficit
- crowding out effect
- surplus
- debt
- expansionary policy
- contractionary policy
- multiplier effect
- automatic stabilizers
