Module 20 and 21 Reading Questions
Name _______________________________
Module 20
1.) What are the 3 main sources of tax revenue for the federal government?
2.) Explain what government transfers are. Also, most U.S. government spending on transfer
payments is accounted for by which 3 big programs?
3.) a.) When would expansionary fiscal policy be used?
b.) What 3 forms does expansionary fiscal policy take?
c.) When would contractionary fiscal policy be used?
d.) What 3 forms does contractionary fiscal policy take?
e.) Does fiscal policy cause a change in Aggregate Supply or Demand?
4.) Explain the time lags associated with fiscal policy.
a.)
b.)
c.)
Module 21
5.) Explain what automatic stabilizers are? What automatic stabilizers do we have in our
economy?