1. Courtney Bristow, Justin Dueker, Allie Romig, Andrey Kibukevich
Economic Policy
Courtney Bristow, Justin Dueker, Allie Romig, Andrey Kibukevich

2. Economic Theory
A theory of commercial activities such as the production and consumption of goods

3. Creation of Economic Policy
President
National Economic Council
House Ways and Means Committee
Federal Reserve System

4. Presidents and the Economy
Republican presidents are less likely to propose and create economic policy
Democratic presidents are more likely to propose and create economic policies

5. Federal debt vs. Federal Deficit
Federal debt is the debt owed by a central government
Federal deficit refers to the increase in debt over a particular year

6. Federal Reserve System
Central banking system of the US
Key objectives: maximum employment, stable prices, and moderate long-term interest rates

7. US Tax System Internal Revenue Service (IRS)
Taxes are collected by federal, state and local governments
Taxes include: income, payroll, property, sales, imports, estates and gifts, and various fees

8. Measuring the Economy
Economic growth is measured by changes in GDP (gross domestic product)
Economic growth is considered with long term trends in production *inflation and deflation must be taken into account when measuring GDP

9. Voting and the Economy Economic policy often drives elections
Voters often blame a president or give one credit for the state of the economy during their term

10. Fiscal Policy vs. Monetary Policy
Fiscal policy: government spending and taxes
Monetary policy: determining the size of the money supply

11. 2012 Fiscal Cliff 2% tax increase for workers
End of tax breaks for businesses
End of Bush tax cuts
Spending cuts on over 1,000 government programs

12. Classical, Keynesian, Monetarist
Classical (Adam Smith- 1800)
Keynesian (John Maynard Keynes- 1930s)
Monetarist (Milton Friedman- 1970s)