9/19/08 Fiscal Policy Economic Growth Monetary Policy Bonus! Final Jeopardy

Topic 1 - For 100 Topic 1 - For 100 Conducts fiscal policy. Conducts fiscal policy. What is the president and Congress

Topic 1 - For 200 Topic 1 - For 200 By using an expansionary fiscal policy, we are trying to change the economy’s output By using an expansionary fiscal policy, we are trying to change the economy’s output Will it increase?

Topic 1 - For 300 Topic 1 - For 300 Unemployment is going up – a certain fiscal policy is in place Unemployment is going up – a certain fiscal policy is in place What is a contractionary fiscal policy?

Topic 1 - For 400 Topic 1 - For 400 An expansionary fiscal policy would have what kind of an effect on the supply of money? An expansionary fiscal policy would have what kind of an effect on the supply of money? None – fiscal policies do not affect the supply of money (they affect the demand for money). DAILY DOUBLE: you can wager up to the total number of points you currently have. DAILY DOUBLE: you can wager up to the total number of points you currently have.

Topic 1 - For 500 Topic 1 - For 500 Has the same effect as a tax increase in fiscal policy. Has the same effect as a tax increase in fiscal policy. How much will spending decrease?

Topic 2 - For 100 Topic 2 - For 100 The institution that conducts monetary policy. The institution that conducts monetary policy. What is the Fed (Federal Reserve)?

Topic 2 - For 200 Topic 2 - For 200 There are two kinds of monetary policy. There are two kinds of monetary policy. What are easy and tight money policies?

Topic 2 - For 300 Topic 2 - For 300 The policy that expands the supply of money. The policy that expands the supply of money. Easy money policy

Topic 2 - For 400 Topic 2 - For 400 An easy money policy will have an effect on employment. An easy money policy will have an effect on employment. Will N increase?

Topic 2 - For 500 Topic 2 - For 500 This type of monetary policy causes inventories to rise. This type of monetary policy causes inventories to rise. Tight money policy.

Topic 3 - For 100 Topic 3 - For 100 Name the three factors of production. Name the three factors of production. What are land, labor, and capital?

Topic 3 - For 200 Topic 3 - For 200 Investment (I) affects which factor of production? Investment (I) affects which factor of production? What is capital?

Topic 3 - For 300 Topic 3 - For 300 True or false: In this section we measure the size of the economy by what it could produce with full employment of labor and capital. True or false: In this section we measure the size of the economy by what it could produce with full employment of labor and capital. Is it true?

Topic 3 - For 400 Topic 3 - For 400 The three mandates of the Fed include economic growth and two more. The three mandates of the Fed include economic growth and two more. Why do we want stable prices and full employment?

Topic 3 - For 500 Topic 3 - For 500 Nick’s SI sessions are in specific times and places today and tomorrow. Nick’s SI sessions are in specific times and places today and tomorrow. Why are they at 1:00 and 6:00 in Zimm 345? DAILY DOUBLE: you can wager up to the total number of points you currently have. DAILY DOUBLE: you can wager up to the total number of points you currently have.

Topic 4 - For 100 Topic 4 - For 100 True or False: A stock or a bond is an example of an income-earning asset. True or False: A stock or a bond is an example of an income-earning asset. True.

Topic 4 - For 200 Topic 4 - For 200 True or False: If the price of an asset goes up, the interest you will receive on the asset also goes up. True or False: If the price of an asset goes up, the interest you will receive on the asset also goes up. False.

Topic 4 - For 300 Topic 4 - For 300 True or False: When demand for money is high, people will buy income- earning assets. True or False: When demand for money is high, people will buy income- earning assets. False.

Topic 4 - For 400 Topic 4 - For 400 True or False: An expansionary fiscal policy will increase the supply of money. True or False: An expansionary fiscal policy will increase the supply of money. False!

Topic 4 - For 500 Topic 4 - For 500 The best way to study for this exam #3. The best way to study for this exam #3. How can we get the practice test? (Mention tutorials)

Final Jeopardy Final Jeopardy A contractionary fiscal policy will meet which of our three big objectives? A contractionary fiscal policy will meet which of our three big objectives? Economic growth and stable prices, but not full employment. Category: 1000 Category: 1000