Fiscal Policy

In class we reviewed the AD/SRAS/LRAS curves and talked about expansionary fiscal policy and contractionary fiscal policy.


Expansionary Fiscal Policy                                             Contractionary Fiscal Policy
-cut taxes                                                                            -increase taxes
-increase government spending                                         -decrease government
-increase government transfers                                          -decrease government transfers

The notes are attached and the homework is listed below.

Notes - Fiscal Policy

HW - pgs. 216-218 (2, 4, 5, 6, 7, 9, 10, 11, 13, 15)
          Module 20 questions
          Read Module 21