Copyright

Ch 11: Fiscal Policy in Economics

About This Chapter

Boost your knowledge of fiscal policy in economics with help from the entertaining lessons and multiple-choice quizzes in this self-paced chapter. Whether you're studying for a test or hope to earn course credit, this chapter offers the comprehensive overview you need to succeed!

Fiscal Policy in Economics - Chapter Summary

Quickly and effectively strengthen your understanding of fiscal policy and economics using this engaging chapter. Get in-depth analyses of pork barrel spending, fiscal restraint, the GDP and much more by exploring fun lessons developed by our top instructors. When you're ready, check your comprehension of these topics by taking mini quizzes and a practice exam. If questions arise about topics covered in the lessons, feel free to submit them to our experts via the Dashboard. By the end of this chapter, you will be able to:

  • Explain the impact fiscal policy and monetary policy have on the economy
  • Define fiscal stimulus and fiscal restraint and discuss the multiplier effect
  • Describe the impact government spending has on private investment
  • Discuss why timing is important in monetary and fiscal policy decisions
  • Share examples of pork barrel spending
  • Compare and contrast public and private spending

5 Lessons in Chapter 11: Fiscal Policy in Economics
Test your knowledge with a 30-question chapter practice test
How Fiscal Policy and Monetary Policy Affect the Economy

1. How Fiscal Policy and Monetary Policy Affect the Economy

Governments often intervene in their economies in an attempt to maintain economic stability. In this lesson, you'll learn about fiscal and monetary policies, including what effect they can have on a national economy. A short quiz follows.

Fiscal Stimulus: Definition, Multiplier Effect & Price Levels

2. Fiscal Stimulus: Definition, Multiplier Effect & Price Levels

Fiscal stimulus is additional government spending or tax cuts designed to increase aggregate demand when the economy is not performing up to its potential. We will work through an example to show how fiscal stimulus works and how much is needed.

Government Spending, GDP, and Crowding Out Private Investment

3. Government Spending, GDP, and Crowding Out Private Investment

When the government spends more than it earns, it has to borrow money, which has repercussions throughout the economy. In this lesson, learn how government spending can crowd out private investment in the market for loanable funds.

The Importance of Timing in Fiscal and Monetary Policy Decisions

4. The Importance of Timing in Fiscal and Monetary Policy Decisions

In this lesson, discover four different types of policy lags that occur when fiscal and monetary authorities take action in attempt to influence economic output. Find out which policy has less of a time lag.

What is Pork Barrel Spending? - Definition & Examples

5. What is Pork Barrel Spending? - Definition & Examples

Pork barrel spending is the use of federal government money towards specific projects in order to help congressmen win re-election. We'll discuss why such spending occurs and look at some examples.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support