Fiscal Policy: Spending & Taxes
The use of government spending and revenue collection to influence the economy.
Key Questions
- 1Is Keynesian "pump-priming" more effective than Supply-Side economics?
- 2How do "automatic stabilizers" like unemployment insurance work during a downturn?
- 3What are the long-term consequences of persistent budget deficits?
Common Core State Standards
Suggested Methodologies
Ready to teach this topic?
Generate a complete, classroom-ready active learning mission in seconds.
More in Macroeconomics: Measuring the Economy
Gross Domestic Product (GDP)
The total value of all final goods and services produced within a country in a year.
3 methodologies
Unemployment & the Labor Force
Measuring who is working, who isn't, and the different types of unemployment (frictional, structural, cyclical).
3 methodologies
Inflation & the Consumer Price Index
The causes and effects of rising prices and the eroding purchasing power of money.
3 methodologies
The Business Cycle
The recurring patterns of expansion, peak, contraction, and trough in economic activity.
3 methodologies
The Federal Reserve & Monetary Policy
The role of the central bank in controlling the money supply and interest rates.
3 methodologies