Name ___________________________________ Date _______________ Period _________ 1. Chapter 14: Fiscal and Monetary Policy Applied Economics What happened to homes in 2008? 2. What happened to Oil prices? Jobs and Stock Prices? 3. How does Charles Wheelan explain recessions? 4. Define Fiscal and Monetary Policy. 5. How did the Great Depression change the Governments approach to Economics? 6. What did classical economists believe? 7. What is Keynes theory? 8. How did we use fiscal policy to end the Great Depression? 9. What was enacted in 1964, proposed by Kennedy? How did this effect the economy? What was a negative effect of this event? 10. What did Friedman and Schwartz argue that the Depression was caused by? 11. Friedman believed in monetary policy or monetarism which means…. 12. What happened in the70’s with OPEC? 13. What is the misery index and what was it at in 1976 and what did it rise to? 14. What happened after Federal Reserve Board Paul Volcker controlled the money supply and reduced the inflation rate? 15. In an ideal world policy makers use fiscal and monetary policy to…… while keeping inflation and unemployment low. 16. What is the goal of expansionary fiscal policy? 17. What is the goal of contractionary fiscal policy? 18. Keynesian believed in demand side economics by cutting individual income taxes but Reagan believed in Supply side economics by cutting taxes on……. 19. Explain the Laffer curve. 20. What were the results of Reagan’s tax cuts? 21. What is the multiplier effect? Give an example of your own. 22. What is an automatic stabilizer? 23. Explain the structure of the Federal Reserve. 24. Easy money policy is used to….. 25. Tight money policy is used to …. 26. If the Fed decides to use open-market operations to slow economic growth they will… (sell or buy bonds and why) 27. What would happen in our economy if the Fed were to raise the Reserve Required Ratio for banks? 28. What is the Discount Rate? 29. What is the rate that banks charge one another for a very short (overnight) loan? 30. What are the three factors that limit the effectiveness of Fiscal and Monetary Policy? 31. What was the national debt in 2008? 32. Who owns our national Debt? (Chart pg 290) 33. What are the four main concerns about our national debt? 34. Explain the Crowding Out effect. 35. EXTRA CREDIT. What is our current National Debt as of TODAY???