Economic Stabilization Policy: Definition & Overview


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Which of the following is the best explanation of an economic fluctuation?

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1. What are two general policies that governments use in an attempt to stabilize an economy?

2. Increasing government spending and lowering taxes does what?

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About This Quiz & Worksheet

Economic stabilization policies are used by governments to regulate economic growth and downturns, a necessary task in this day and age. Some of the concepts that you'll be tested on include the definition of economic stabilization policies, the types of stabilization policies, and the effects of these policies.

Quiz & Worksheet Goals

In these assessments, you'll be tested on:

  • Increasing government spending and lowering taxes
  • Two general policies that governments use in an attempt to stabilize an economy
  • How policies affect the overall economy

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on economic stabilization policies
  • Defining key concepts - ensure that you can accurately define main phrases that describes stabilization policies
  • Knowledge application - use your knowledge about the effects of policies to answer questions about applications of a policy

Additional Learning

To learn more about economic stabilization policies, review the accompanying lesson Economic Stabilization Policy: Definition & Overview. This lesson covers the following objectives:

  • Define economic stabilization policies
  • Differentiate between the two types of stabilization policies
  • Understand the effects of the two types of policies