Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Business cycle wikipedia , lookup
Economics of fascism wikipedia , lookup
Steady-state economy wikipedia , lookup
Transformation in economics wikipedia , lookup
Economy of Italy under fascism wikipedia , lookup
Post–World War II economic expansion wikipedia , lookup
Fiscal multiplier wikipedia , lookup
Economic Policy An Overview of Chapter 23 Pop Quiz 23 • Log on to room 917563. • You may use p. 76 to take the quiz. • Close your Chrome books and put them away. Comparing Terms Macroeconomics Microeconomics • Deals with broad & • Deals with specific general aspects aspects of one part of of an economy, as the an economy, like relationship between households, income & businesses, individuals, investments of a country etc. as a whole. • Measures the income, • Measures the national profits, and well-being economy: GDP, inflation, of a particular group. unemployment, etc. Monopolies • What is a monopoly? • Why are monopolies “bad” for consumers? – Artificially high prices – No substitutes for good or service – No incentive to stop poor service or quality • Adam Smith believed one of the few roles of government in an economy was to keep competition fair. Government Intervention • Sherman Anti-trust Act made monopolies that intentionally hurt competition illegal. • Clayton Anti-trust Act gave the federal government the power to break up illegal monopolies. • The Federal Trade Commission has the authority to fine, regulate, and even break up businesses that act like monopolies. They must approve mergers of businesses. • So do monopolies still exist? YES! Natural Monopolies • Exist because seller has a unique product or idea. • Examples? Government Monopoly • Run by or exist by the permission of the federal government. • Examples? Geographical Monopolies • Exist due to the fact that no other competition is in area. • Examples? Technological Monopolies • Exists due to patents and copyrights or because competition cannot replicate idea. The Business Cycle Economic Indicators • GDP is the total dollar value of all FINAL GOODS produced in a country in a year. • Not affected by inflation (Real GDP) • Inflation can affect GDP (ex. Gas prices) • CPI (consumer price index) Economic Indicators • Unemployment is the total # out of work actively seeking a job – Full employment is around 4% – Highest unemployment was 33% during the Great Depression • Unemployment is gauged by the number of people applying for benefits. • Unemployment has an impact on many other economic indicators. Controlling the Economy Fiscal Policy Controlling taxing and spending by the government to influence the economy. Affects incomes, services, benefits & spending. Fiscal policy is controlled by the President and Congress. Affecting the Economy • How does a rise in taxes effect the economy? Explain. • How does an increase in government spending (such as on programs like building bridges, schools, or roads) effect the economy? Explain. • Using the above examples, how does the government use fiscal policy to affect the economy? Types of Taxes Individual Corporate 49% 33% Social Insurance Excise Estate/Gift 9% Miscellaneous Custom Duties The Current National Debt http://www.brillig.com/debt_clock/ Who is ultimately responsible for our National Debt? • Presidents make the budget. • Congress approves the budget. • People demand services, low taxes. How the Debt Increases Public Assistance • • • • • • Public Education TANF WIC SSI Social Security Food Stamps/EBT