Distinguishing expansionary and contractionary fiscal policy

Question

Question 1) State the Employment Act of 1946 and the functions of the CEA and JEC.

Question 2) Differentiate between discretionary and nondiscretionary fiscal policy.

Question 3) Distinguish between expansionary and contractionary fiscal policy.

Question 4) Identify the conditions for recommending the expansionary or contractionary fiscal policy.

Question 5) Describe expansionary fiscal policy and its effects on an economy and Federal budget.

Question 6) Describe contractionary fiscal policy and its effects on economy and Federal budget.

Question 7) Explain the two ways to finance the government budget deficit and how each affects economy.

Question 8) Explain the two ways to handle the government budget surplus and how each affects economy.

Question 9) Write down two examples of how built in stabilizers help eliminate recession or inflation.

Question 10) Describe the differential impacts of progressive, proportional, and regressive taxes in terms of stabilization policy.

Question 11) Describe the importance of the “full-employment budget” concept.

Question 12) Write down the three timing problems encountered with fiscal policy.

Question 13) Define political problems which limit effective fiscal policy.

Question 14) Describe and recognize graphically how crowding out and inflation can reduce effectiveness of fiscal policy.

Question 15) Write down the two examples of complications which may arise when fiscal policy interacts with international trade.

Question 16) Write down the example of supply side fiscal policy and three possible positive effects from it.