Chapter 16.4- Economics

• Economie
• Secondary Education

Unscramle the word

mnoetrya liopyc

Chapter 16,Section 4:

Applying Monetary and Fiscal Policy, 

Pages 498-503

Objectives

Describe rational expectation theory

Analyze the cause and effect chart for the policies

Evaluate the given situation

Watch a video

https://www.youtube.com/watch?v=Skekj7Y8szo

What is rational expectation theory?

Give example of a rational expectation theory.

A phenomenon in which individuals and businesses learn to cope with the changes in monetary and fiscal policy

1. Expansionary policy
2. Conflicting policy
3. Contractionary policy
4. Rational expectation theory

What is the cause and effect of expansionary monetary and fiscal policy?

What is the cause and effect of contractionary fiscal and monetary policy?

What is the cause and effect of conflicting policies?

What type of policy does the cartoon reflect?

Identify the name of the economic tool used by the government

Answer

Tax cut

How might buying a trip to Las Vegas would help stimulate the economy?

Answer

It would increase aggregate demand

Give the main points of the lesson.