What is Fiscal Policy?

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The federal government's use of taxation and spending policies to affect overall business activity is called _____.

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1. Jane is a presidential adviser in the time of the 2008 Global Economic Crisis. The president is asking her if he should use fiscal policy in an attempt to combat the effects of the crisis. Why does she likely tell him yes?

2. Which of the following should the government use when it wants to increase demand for goods?

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About This Quiz & Worksheet

The government's fiscal policy is an integral part of the economics of the United States. This quiz and worksheet will help determine how well you understand this policy by asking questions about its different versions and uses.

Quiz & Worksheet Goals

Prepare to be quizzed on the following aspects and types of fiscal policy:

  • Policy to prevent boom and bust scenarios
  • Method to recover from recessions
  • Concerns of its use

Skills Practiced

You will have an opportunity to practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related economics lesson
  • Making connections - use understanding of different types of fiscal policies
  • Information recall - access the knowledge you've gained regarding the government's use of spending policies and taxation

Additional Learning

Deepen your understanding of this subject by reviewing the accompanying lesson, What is Fiscal Policy. This lesson will address these objectives:

  • Define fiscal policy
  • Understand the government's practice of raising or lowering taxes
  • Learn about various approaches to fiscal policy
  • Evaluate the effectiveness of this economic procedure
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