What is fiscal policy? What are the primary tools of fiscal policy?
What will be an ideal response?
An ideal response will:
1, Define fiscal policy as the government's use of taxation and spending policy to affect economic growth.
2, Explain how increasing or decreasing taxes speeds or slows economic growth.
3, Explain how increasing or reducing government spending affects the economy and the rate of unemployment.
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Imagining twentieth-century technology in a nineteenth-century setting is not a cotenable counterfactual
Indicate whether this statement is true or false
Demonstrate how the majority of civil servants in the United States are employed by the local government
A) Local government provides many government services including schools and police, resulting in a greater number of civil servants at the local level. B) The majority of people are employed by local government because there are more of them in the nation than state or federal governments. C) Local government creates jobs that are easier to obtain than state or federal. D) Most people start out at the local government level before advancing to the state and federal levels.
The economic downturn and President Bush's 2001 tax cut led to large federal budget deficits
Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1.Tax reform during the Clinton administration tended to build more special provisions and loopholes than it eliminated. 2.Increases in wealth from capital gains tend to be taxed at higher rates than increases in wealth from regular income. 3.Profits from the sale of houses are considered capital gains.