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15-1 Vocabulary jw

QuestionAnswer
Refers to government revenue, spending and debt. Fiscal
Uses taxes and governemnt spending to affect the economy. Fiscal policy
a plan to increase aggregate demand and stimulate the economy. Expansionary fiscal policy
A plan to reduce aggregate demand and slow the economy. Contractionary fiscal policy
Refers to actions selected by the government to stablize the economy. Discretionary fiscal policy
Policy features that work automatically to steady the economy. Automatic stablizers
A theory that states that people anticipate that changes in fiscal policy will affect the economy in a particular way, will take steps to protect their interests. Rational expectations theory
A group of economic advisors to the president. Council of Economic Advisers
Created by: joannw15
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