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Transcript of FISCAL POLICY
THE BUSINESS CYCLE
Oops! Before we start, what are the three economic indicators?!
THE BALANCING ACT
The government creates policies to help our economy stay healthy . . .
Fiscal policy is control of the nation's economy through taxes and spending.
EXPANSIONARY FISCAL POLICY
Used to recover from a recession . . .
CONTRACTIONARY FISCAL POLICY
IT'S ALL ABOUT BALANCE . . .
Maintaining a Healthy Economy
The business cycle is a series of economic expansion and recession
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WHAT IS FISCAL POLICY?
Fiscal policy is established by the United States Congress
Road to Economic Recovery
Lower taxes for individuals and corporations
Gives people more money to spend!
Increase government spending
Provides more government services and projects leading to jobs
Used to slow down a rapidly growing economy
Avoiding a Recession
Increase taxes on individuals and corporations
People have less money to spend
Decrease government spending
Cuts government programs and projects -- fewer jobs