1. Sides Game

2. Contractionary Fiscal Policy should only be implemented when the SR macroeconomic equilibrium is to which side of LRAS

3. Keynes argued that fiscal policy should be used to influence AD or AS

4. Revenue > Expenditure

5. Sum of all deficits (+) and surplus (-) =

6. Stabilization policies are used to encourage sustainable growth while maintaining the delicate balance between _____ and ______

7. Give an example of discretionary fiscal policy

8. Revenue = Expenditure

9. Ratio used to compare the scale of countries (with different size economies) debt problem

10. Give an example of an automatic stabilizer

11. Expansionary Fiscal Policy should only be implemented when the SR macroeconomic equilibrium is to which side of LRAS

12. Most intragovernment (interdepartmental) debt is held in this programs trust fund

13. Deficit that grows during a recessionary gap and goes negative during expansionary gap

14. Which lag is identical in monetary and fiscal policy?

15. List the 3 tools of the Fed

16. Which two lags are MUCH longer in fiscal policy?

17. According to the Ricardo-Barro theory, increased government deficit spending leads to
More or less spending by consumers and businesses

18. Which is the main tool of monetary policy?

19. Which rate is targeted by OMO?

20. Which combination will definitely increase AD?
Discount Rate
Government Spending
Open Market Operations

21. When further increases in the money supply do not decrease interest rates, the economy has fallen into a __________ trap

22. The Phillips Curve looks at the relationship between

23. Which combination will definitely reduce the inflation rate?
Discount Rate
Government Spending
Open Market Operations

24. The crowding out effect will increase if the Fed employs which OMO?

25. When the Fed sells bonds, what happens to
Interest rates
Investment
RGDP PL

26. Revenue < Expenditure

27. The LRPC looks just like which curve from the AD/AS model?

28. Critics refer to supply side economics as

29. Which curve shows that lower tax rates may produce more government revenue?

30. GAME OVER!

31. Final Note
Bond buying counteracts crowding out!