Fiscal Policy Jeopardy Federal Budget Spending Tools Aggregate Demand Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy Taxes

$100 Question from Taxes A required payment to a local, state, or national government

$100 Answer from Taxes What is a tax

$200 Question from Taxes Income received by the government from tax collection

$200 Answer from Taxes What is revenue

$300 Question from Taxes The three types of tax structures

$300 Answer from Taxes What are proportional, progressive, and regressive

$400 Question from Taxes This funds Social Security and Medicare

$400 Answer from Taxes What is FICA (Federal Income Contributions Act)

$500 Question from Taxes The four characteristics of a good tax

$500 Answer from Taxes What are simplicity, efficiency, certainty, and equity

$100 Question from Federal Budget A written document indicating the amount of money the government expects to receive and how they will spend it

$100 Answer from Federal Budget What is a federal budget

$200 Question from Federal Budget During this step Congress makes changes to the budget and sends the amended budget to the President

$200 Answer from Federal Budget What is Step 3

$300 Question from Federal Budget Occurs then the government spends more than it takes in

$300 Answer from Federal Budget What is budget deficit

$400 Question from Federal Budget The total amount of money the federal government owes to bondholders

$400 Answer from Federal Budget What is the national debt

$500 Question from Federal Budget A type of loan with a promise to repay with interest

$500 Answer from Federal Budget What is a bond

$100 Question from Spending Programs that lawmakers are required by existing laws to spend money on

$100 Answer from Spending What is mandatory spending

$200 Question from Spending Spending that government can adjust; increase or decrease

$200 Answer from Spending What is discretionary spending

$300 Question from Spending Social welfare programs that people are entitled to if they meet certain requirements

$300 Answer from Spending What are entitlements

$400 Question from Spending Largest category of federal spending

$400 Answer from Spending What is Social Security

$500 Question from Spending Pays the salaries of people in the army, navy, air force, marines and civilian employees. Largest portion of discretionary spending.

$500 Answer from Spending What is defense spending

$100 Question from Tools Fiscal policy like higher spending and tax cuts that encourage growth

$100 Answer from Tools What is expansionary fiscal policy

$200 Question from Tools Fiscal policy like lower spending and higher taxes that reduce economic growth

$200 Answer from Tools What is contractionary fiscal policy

$300 Question from Tools The policy used to decrease unemployment

$300 Answer from Tools What is expansionary

$400 Question from Tools The policy used to decrease inflation

$400 Answer from Tools What is contractionary

$500 Question from Tools This policy reduces the budget deficit

$500 Answer from Tools What is contractionary

$100 Question from Aggregate Demand The sum of all supply and demand in an economy

$100 Answer from Aggregate Demand What is Aggregate

$200 Question from Aggregate Demand The four components of Aggregate Demand

$200 Answer from Aggregate Demand What are C + I + G + NX

$300 Question from Aggregate Demand Reasons why Aggregate Demand Curve is downward sloping

$300 Answer from Aggregate Demand What are wealth effect, interest rate effect, exchange rate effect

$400 Question from Aggregate Demand Government spending increases

$400 Answer from Aggregate Demand What is shifts to the right

$500 Question from Aggregate Demand Government implements contrationary fiscal policies

$500 Answer from Aggregate Demand What is shifts to the left

Final Jeopardy ScenarioExpansion/ Contraction Effect on Federal Budget Objective for AD Action on Taxes Action on Gov’t spending Effect on the National Debt The government decreases defense spending and takes more money from individual incomes.

Final Jeopardy Answer ScenarioExpansion/ Contraction Effect on Federal Budget Objective for AD Action on Taxes Action on Gov’t spending Effect on the National Debt The government decreases defense spending and takes more money from individual incomes. ContractionMove toward surplus