Ch 18 economic policy homework
Ap government
1. Explain the economic, substantive, and political reasons for the national debt.
1.
Show how voters have contradictory attitudes regarding their own and others’ economic
circumstances.
2.
List and briefly explain four competing economic theories. Assess the nature and impact of
Reaganomics.
3.
List the four major executive-branch agencies involved in setting economic policy and explain the
role of each.
4.
Analyze federal fiscal policy in terms of the text’s four categories of policymaking politics.
5.
Trace the history of federal government budgeting practices.
Part II Vocabulary 10 points
Vocabulary
Budget
budget surplus
deficit
discretionary spending
economic planning
entitlement
fiscal policy
Globalization
gross domestic product
Keynesianism
loopholes
monetarism
monetary policy
national debt
planning
price and wage control
Treasury Department
sequester
self-regarding voter theory
supply-side theory
7. Why is the president held accountable for the economy? Remember that Congress plays an important
role in setting fiscal policy and that the Federal Reserve Board is largely independent in setting monetary
policy.
8. Do voters base their support of economic policy on what is best for them personally or what is best for
the nation as a whole? Is it possible for politicians to convince voters to pay more taxes for the good
of the nation? Or do they have to offset the tax increase with some corresponding benefit (such as
increased financial aid for college students)?