Problem 1
Explain the relationship between the terms in each of these pairs. a. Keynesian economics demand-side fiscal policy b. supply-side fiscal policy Laffer Curve
Problem 1
Use each of the three terms below in a sentence that illustrates the meaning of the term. a. expansionary fiscal policy b. discretionary fiscal policy c. rational expectations theory
Problem 2
What are the two basic goals of fiscal policy?
Problem 2
How do budget deficits affect the national debt? Why?
Problem 2
How did the Great Depression influence Keynesian economics?
Problem 3
What do Treasury bills, Treasury notes, and Treasury bonds have in common?
Problem 3
How is the spending multiplier effect related to demand-side economics?
Problem 3
How do expansionary fiscal policy and contractionary fiscal policy use the same fiscal policy tools in different ways?
Problem 4
What is the difference between discretionary fiscal policy and automatic stabilizers?
Problem 4
How are supply-side and demand-side economics different?
