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4 cards from this section. Quick, good the night before a test.
Define fiscal policy.
Think about how government decisions on money relate to the economy.
What are two main tools of fiscal policy?
Remember the acronym TACK!
What is the primary purpose of fiscal policy?
Think about how the government affects economic conditions.
True or False: Fiscal policy can only increase government spending.
Consider the flexibility of government actions regarding economic needs.
Design a fiscal policy strategy for a hypothetical country facing high inflation. Discuss the tools you would use and expected outcomes.
Think about the relationships between demand, inflation, and government policies.
Critically analyze how income redistribution through fiscal policies might affect economic behavior of high-income earners.
Consider the implications on motivation and the economy.
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