Welcome to Fiscal Policy! LET’S BEGIN WITH THE CALL TO ORDER: Why do you think that the government taxes cigarettes so heavily? What effect does taxation have on a person’s willingness to buy things?”

Objective Students will be able to analyze how the government uses expansionary and contractionary fiscal policy to control the economy BY completing a graphic organizer, participating in a simulation, and completing an exit ticket.

Fiscal Policy Using taxing and spending to control the economy.

Expansionary Fiscal Policy During a recession, the government will want to DECREASE taxes and INCREASE spending, to put more money in the hands of consumers.

Contractionary Fiscal Policy During an expansion, the government might want to slow down the growth of the economy. Therefore, the gov’t would increase taxes and decrease spending.