About This Chapter
MTTC History: Fiscal & Monetary Policies - Chapter Summary
Let us help you refresh your knowledge of fiscal and monetary policies, supply-side economics, expansionary gap and more with the videos in this chapter. You'll be ready to answer questions about these topics on the MTTC History exam after reviewing concepts like:
- Ideas of John Maynard Keynes and their impact on the economy
- Essential tools used in fiscal policy
- Expansion and contraction of aggregate demand through different policy moves
- Reasons tax codes are often progressive
- Automatic economic stabilizers
- Contractionary and expansionary gap size calculations
- The importance of timing in fiscal and monetary policy decisions
Our instructors provide real-world examples and step-by-step instructions to help you understand each concept in order to apply them on the exam. Key vocabulary terms are highlighted in the transcripts that come with each lesson, and you can re-watch the videos as often as you want. If you just need to review a main point in a video for your test preparation, use the video tags to jump to that spot in the video.
Objectives of the MTTC History: Fiscal & Monetary Policies Chapter
The MTTC History exam gauges your comprehension of history topics and is a step in the teacher licensure process in Michigan. Questions on fiscal and monetary policies are covered in the fourth subarea of this exam, interdisciplinary perspectives. About one quarter of the test's multiple-choice questions are found in this area. Use the self-assessment quizzes in this course to make sure you're ready for the content of the exam questions and to get familiar with their format.
1. Fiscal Policy: The Keynesian Revolution
In this lesson, you'll learn how the government uses stabilization policy to smooth out the ups and downs of the business cycles. In stark opposition to the Classical approach, this Keynesian approach favors taking immediate action to stabilize a troubled economy.
2. Fiscal Policy Tools: Government Spending and Taxes
Discover the three main tools the government uses to address recessionary and inflationary economies - what economists call fiscal policy. Find out how these tools are used to help the economy in different situations.
3. Expansionary Fiscal Policy and Aggregate Demand
In the 21st century, the realities of a recessionary economy are more vivid than many of us would probably like. In this lesson, you'll learn how the government uses expansionary policy to offset recessionary gaps using real-world examples.
4. Contractionary Fiscal Policy and Aggregate Demand
This lesson examines how fiscal authorities use contractionary fiscal policy to slow down the economy and defeat the enemy called inflation. Find out what fiscal tools the federal authorities can use to contract the economy.
5. Fiscal Policy and the Effects on Unemployment
Review what fiscal policy is and how the two key components of fiscal policy can be used to influence unemployment. Find out when and how fiscal policy can be used and why it is so important.
6. Understanding the Progressive Tax Code
In this lesson, learn what a progressive tax code is, how to recognize it, and what the alternatives are. Then, learn the differences between the three tax codes: progressive, regressive and proportional. Finally, learn how sales tax would impact progressivity.
7. Automatic Stabilizers in Economics: Definition & Examples
Watch this lesson to learn about the features that are built into the tax code and the government's budget that help offset declines in aggregate demand during recessions. Referred to as automatic stabilizers, they also address the needs of individuals facing hard times.
8. Expansionary Monetary Policy: Helping the Economy Grow
In this lesson, you'll learn how the central bank helps the economy grow during recessions by increasing the size of the money supply. An overview of the three tools of monetary policy are included as well as the reasons why monetary policy leads to higher economic output.
9. Contractionary Monetary Policy: Slowing the Economy Down
In this lesson, you'll find out more about the central bank's efforts to deal with an overheating economy, what economists call 'contractionary monetary policy.'
10. 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.
11. Supply-Side Economics in Fiscal and Monetary Policy
This lesson explains what supply-side economics is, where it started, and how economists illustrate it. It provides a basic overview of the still-controversial theory that was popularized by President Ronald Reagan during the 1980s.
12. Short-Term GDP and National Debt: Keynes' Theory
Discover the tension fiscal authorities face between the two equally rewarding goals of reducing the national debt and maintaining a growing economy in the short term. This lesson explains the tension from the Keynesian point of view.
13. What is a Contractionary Gap? - Identifying an Economy That is Below Potential
In this lesson, you'll discover what a contractionary gap is with a real world example. In addition, you'll learn how economists illustrate it, so you can easily recognize it.
14. Calculating the Size of a Contractionary Gap
Sometimes the economy's actual production is below its potential, and in this lesson, you'll learn how to calculate the gap between the two, something economists call 'a contractionary gap.'
15. What is an Expansionary Gap? - Identifying an Economy That is Above Potential
In this lesson, you'll find out what an expansionary gap is, how economists illustrate it, and how to easily identify an economy that is growing above its long-run potential. In addition, you'll discover the unintended consequence that comes with expansionary gaps.
16. Calculating the Size of an Expansionary Gap
This lesson will teach you how to estimate the size of an expansionary gap by calculating the difference between actual economic output and potential economic output. The task of knowing the size of an expansionary gap is critical for economists and government leaders who want to attempt to eliminate it so they can help smooth out the business cycle.
17. Managing the Economy with Fiscal and Monetary Policies
Learn what fiscal and monetary policy are and how they are used to manage the economy. Find out the goals of these policies and some of the tools that each use to help you find a job and influence the amount of money in your pocket.
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Other chapters within the MTTC History (009): Practice & Study Guide course
- MTTC History: Historical Research
- MTTC History: Tools for the Classroom
- MTTC History: The Stone Age
- MTTC History: The Bronze & Iron Ages
- MTTC History: Ancient Civilizations
- MTTC History: Ancient Middle East & India
- MTTC History: Early China & Japan
- MTTC History: Foundations of Religion
- MTTC History: Hinduism
- MTTC History: Buddhism
- MTTC History: Confucianism
- MTTC History: Judaism
- MTTC History: Christianity
- MTTC History: Islam
- MTTC History: Classical Greece
- MTTC History: The Roman Republic & The Roman Empire
- MTTC History: Government & Culture in the Middle Ages
- MTTC History: War, Revolution & Culture in France & England
- MTTC History: European Renaissance & Reformation
- MTTC History: African Cultures Before European Colonization
- MTTC History: Exploration & Colonization of the Americas
- MTTC History: Revolution & War in the Americas
- MTTC History: Revolution & Independence in Europe
- MTTC History: The Industrial Revolution & Enlightenment
- MTTC History: Germany During the World Wars
- MTTC History: The World Wars
- MTTC History: The Cold War
- MTTC History: Pre-Columbian North America
- MTTC History: Early North American Settlements
- MTTC History: Road to the American Revolution
- MTTC History: The American Revolution
- MTTC History: Ratification of the U.S. Constitution
- MTTC History: The Virginia Dynasty
- MTTC History: Jacksonian Democracy
- MTTC History: Manifest Destiny
- MTTC History: The American Civil War
- MTTC History: American Reconstruction
- MTTC History: Industrialization & Urbanization in the U.S.
- MTTC History: The Progressive Era
- MTTC History: American Imperialism
- MTTC History: The Roaring 20s in the U.S.
- MTTC History: The Great Depression in the U.S.
- MTTC History: World War II
- MTTC History: The Cold War & U.S. Politics
- MTTC History: Protests, Activism & Civil Rights
- MTTC History: America in the 1970s
- MTTC History: Contemporary American Presidents
- MTTC History: Introduction to Geography
- MTTC History: Spatial Processes
- MTTC History: Geography Tools
- MTTC History: The Dispersal of Humans & Culture
- MTTC History: Human Settlement Patterns
- MTTC History: Population & the Environment
- MTTC History: Ethnicity & Geography
- MTTC History: Geography of Languages, Religions & Material Culture
- MTTC History: Basics of Political Science
- MTTC History: American Government Overview
- MTTC History: Constitutional Democracy in the U.S.
- MTTC History: Federalism in the U.S.
- MTTC History: Political Ideologies & Philosophy
- MTTC History: American Political Culture, Opinion & Behavior
- MTTC History: Civil Liberties in the U.S.
- MTTC History: Civil Rights in the U.S.
- MTTC History: U.S. Political Parties
- MTTC History: U.S. Electoral Systems
- MTTC History: Interest Groups & American Democracy
- MTTC History: Federal Bureaucracy in the U.S.
- MTTC History: Types of Legislatures in Government
- MTTC History: The American Presidency
- MTTC History: The American Congress
- MTTC History: The Federal Judicial System
- MTTC History: Introduction to Economics
- MTTC History: Scarcity, Choice & the Production Possibilities Curve
- MTTC History: Demand, Supply & Market Equilibrium
- MTTC History: Aggregate Demand & Supply
- MTTC History: Measuring the Economy
- MTTC History: Federal Government & the American Economy
- MTTC History: Inflation Measurement & Adjustment
- MTTC History: Understanding Unemployment
- MTTC History: Inflation & Unemployment
- MTTC History: Macroeconomic Equilibrium
- MTTC History: Money, Banking & Financial Markets
- MTTC History: Central Bank & the Money Supply
- MTTC History: Foreign Exchange & the Balance of Payments
- MTTC History: Democratic Values & Society
- MTTC History Flashcards