First: take notes and complete the activities - Fiscal Policy Nearpod: Click Here
Second: Complete the following on your own paper. Draw the business cycle large enough that you can write/label inside it. Complete all of the following steps. I also attached the directions if you prefer to look at it from a word document.
Business Cycle and Fiscal Policy Practice
Part 1:
1.Draw a fully labeled business cycle and include all of the following:
a.Correctly label both the X and Y-axis
b.Label the phases: expansion, contraction, peak, and trough
2.On the back, list and define the 3 macroeconomic indicators and identify how they are measured.
3.On your graph, label the following:
a.GDP increasing
b.GDP decreasing
c.Price Level increasing
d.Price Level decreasing
e.Unemployment rate increasing
f.Unemployment rate decreasing
Part 2:
Fiscal Policy Practice: Fiscal Policy: the tools of the government to promote economic growth, price stability, and lower unemployment. Two tools: taxing and spending. Answer the following questions on the back of your graph:
4.During what phase of the business cycle would the government be worried about inflation?
a.How would the government use each tool of fiscal policy to combat inflation?
5.If the government is trying to promote economic growth and lower unemployment, would they use expansionary or contractionary fiscal policy?
a.How would the government use each tool to promote economic growth and lower unemployment?
6.What is contractionary fiscal policy?
a.Which phase of the business cycle is this used?
b.What is the goal of contractionary policy?
c.How is each tool used during contractionary policy?
7.What is expansionary fiscal policy?
a. Which phase of the business cycle is this used?
b.What is the goal of expansionary policy?
c.How is each tool used during expansionary policy?
Part 3:
8.On your business cycle, label which phase the government would use Fiscal Policy. Make sure you label that these are Fiscal Policy Tools.
a.Raise Taxes
b.Lower Taxes
c.Increase Spending
d.Decrease Spending
Third Thing: Study Island - Monetary and Fiscal Policy
Business Cycle - Fiscal Policy Application |