Download AP GOVERNMENT / CHAPTER 18 QUESTIONS

AP GOVERNMENT / CHAPTER 18 QUESTIONS- ECONOMIC POLICY / MR. LIPMAN
1. Why did the Federal Government become active in the economic interests of the citizens during the
late 19th and early 20th century? What are business cycles?
2. Explain the concept of Laissez-faire economic policy.
3. Why did the depression, and the era of the New Deal, mark a turning point in the economic history
of the United States?
4. Explain the Financial, Agriculture, Labor and Industry reforms that took place under F.D.R.
5. What is the concept of deregulation and how has it been applied?
6. Read page 585 and answer the 3 critical thinking questions.
7. What is the difference between a recession and inflation?
8. What is the Federal Reserve System and how does it operate? What is Monetary Policy? What are
the three key tools of Monetary Policy?
9. What is Fiscal policy? What has been the effect of globalization on the fiscal policy of the
United States?
10. Identify the major sources of revenue for the government and the major source of expenditures.
11. Answer the Join the Debate question on page 595.
12. What is Gross Domestic Product? What is the difference between a debt and the deficit? What is
the correlation between America’s GDP and the national deficit?
13. What is the percentage of tax paid by the wealthiest 1% in America in 2014? What amount of
yearly income did the IRS say put people in the top 1% for the year 2014? (use the internet)