1. AP Economics Mr. Bernstein Module 20: Fiscal Policy: The Basics (p 202-204 and p 499) October 2015

2. AP Economics Mr. Bernstein Expanded Circular Flow Diagram 2

3. AP Economics Mr. Bernstein Governments and their economies 3

4. AP Economics Mr. Bernstein Fiscal Policy Taxes, USA, 2008 4

5. AP Economics Mr. Bernstein Fiscal Policy Government Spending 5

6. AP Economics Mr. Bernstein Fairness and Taxation – what is a “Fair Share”? Proportional Tax - one rate, regardless of income level No tax breaks for charity, home mortgage, etc. Popularly labeled “Flat Tax” Progressive Tax – rates are higher for higher earners Regressive Tax – rates are higher for lower earners 6