Unit 5: Macroeconomics
Part 2: Fiscal and Monetary Policy
Objectives:
Optional Homework for Unit 5
Read pages 301-307; Answer section 1; Review on page 307 #'s 1-6
Read pages 337-344; Answer section 3; Review on page 344 #'s 1-4
Read pages 349-354; Answer section 1; Review on page 354 #'s 2-5
- What are three functions of money?
- What characteristics must something have in order to be used as money?
- What are the three types of money?
- What are examples of the three types of money?
- What is monetary policy?
- Who implements monetary policy?
- What is the FED?
- What are the tools available to the FED?
- How does the FED use their tools and for what purpose?
- What is tight money vs. loose money?
- What is fiscal policy?
- Who implements fiscal policy?
- What is the difference between a progressive tax, a regressive tax, and a proportional tax?
- What would be an example of each type of tax?
- What is the difference between a social insurance program and a redistributing of income program?
- What would be example of each?
- What is the safety net and what is its purpose?
- What is the difference between a deficit and the national debt?
- What is aggregate demand?
- Understand how to use monetary and / or fiscal policy in order to achieve an economic goal.
- After interpreting economic data be able to diagnose a problem and propose a combination of fiscal and monetary policies to help solve that problem.
Optional Homework for Unit 5
Read pages 301-307; Answer section 1; Review on page 307 #'s 1-6
Read pages 337-344; Answer section 3; Review on page 344 #'s 1-4
Read pages 349-354; Answer section 1; Review on page 354 #'s 2-5