Download Name: _________________________________________________ Government Economics Review Guide

Name: _________________________________________________
Government Economics Review Guide
Directions: Work in your groups to complete the review guide. There are two sections,
Economic Policies and Economic Measures. Complete both sections and analyze the
political cartoon provided at the end of the review guide.
TOPIC: ECONOMIC POLICIES
Vocabulary Definitions:
1. Fiscal Policy – President and Congress influencing the economy through
government spending
2. Monetary Policy – Federal Reserve influencing the economy by controlling the
money supply
3. Neoclassical Policy – Decrease government spending, decrease taxes on the wealthy
4. Keynesian Policy – Increase government spending, decrease taxes on the poor
5. Expansionary Policy – Federal Reserve expands the money supply, interest rates go
down, helps improve the economy
6. Contractionary Policy – Federal Reserve reduces the money supply, interest rates go
up, slows down the economy to combat inflation
Questions
1. Which political party supports Neoclassical economics? Name a President
associated with Neoclassical economics.
Republicans, Ronald Reagan
2. Which political party supports Keynesian economics? Name a President associated
with Keynesian economics.
Democrats, Franklin D. Roosevelt
Fiscal Policy
Monetary Policy
Entity in Charge
President/Congress
Federal Reserve
Length of Impact
Short Term
Long Term
Item Impacted
Government Spending
Money Supply
Types
Neoclassical, Keynesian
Expansionary, Contractionary
TOPIC: ECONOMIC MEASURES
Vocabulary Definitions:
1. GDP – Gross Domestic Product, measures in dollars the final amount of goods and
services produced by a country
2. CPI – Consumer Price Index, measures change in prices over time
(inflation/deflation)
3. Inflation – Sustained increase in prices over time
4. Deflation – Sustained decrease in prices over time
GDP
CPI
Measures
Production
Inflation and Deflation
Formula
Sum of all final goods and
services produced
(New Price/Old Price)*100
Economic Health
Up: Good
Down: Bad
Up: Good
Down: Bad
POLITICAL CARTOON ANALYSIS
Directions: List three symbols that you see in the political cartoon. Shortly describe the
message of the political cartoon.
1.
2.
3.
Message: