Transcript Unit 3 Business Cycle Fiscal Policy

Know all
terms on
Business
Cycle
Where are
we now?
Long term
growth trend of
RGDP = 3%
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What are the problems/concerns on the downward slope?
GDP? CPI? Unemployment?
Solution?
Government –
Expansionary Fiscal Policy (Fiscal –
of/or relating to govt.)
Tools: Decrease Taxes / Increase Govt. spending {Goal?}
Long term
growth trend =
3%
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What are the problems/concerns near/at peak?
GDP? CPI? Unemployment?
Solution?
Government –
Contractionary Fiscal Policy
Tools: Increase Taxes / decrease Govt. spending {Goal?}
WHOWHATWHEN
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Who?
Government
What? (Tools?)
(G spending or taxes [up or down])
When?
When would the government use the tools
they have / under what circumstances?