| Government and the Economy | Instruments and Obstacles for Controlling the Economy | Arenas of Economic Policy | Terminology & Miscellaneous |
|---|---|---|---|
|
capitalist (or mixed)
The United States operates under what type of economy?
|
Federal Reserve System
What is the government's main agency for monetary policymaking?
|
Possible Answers: subsidies, tax breaks, loans, providing assistance (via government agencies), and funding beneficial research
What is one way that the government benefits business?
|
rise in prices
What is inflation?
|
|
consumer price index (CPI)
What is one way to determine inflation rates?
|
the President and Congress
Who controls fiscal policy?
|
antitrust legislation; the government regulates business by ensuring competition and preventing monopoly
What is the significance of the Sherman Act of 1890?
|
the percentage of people actively seeking a job but cannot find one
What is the unemployment rate?
|
|
Congress
The Constitution gives key economic power to ______.
|
decentralized
Is the economic policymaking power in the U.S. centralized or decentralized?
|
consumer protection legislation
The uncovering of unsafe products and false advertising led to what kind of legislation in the 1960s and 1970s?
|
liberal: active government involvement
conservative: minimal government intervention
What is the liberal AND conservative view towards government's role in the economy?
|
|
Democratic Party
Which party are unemployed people like to vote for?
|
activist, large-scope government
What kind of government does the Keynesian economic theory support?
|
Possible Answers: unemployment compensation, minimum wage, and standards for safe working conditions and work hours
Name two union successes that were accomplished by government intervention in the economy?
|
the right to have labor union representatives negotiate with management to determine working conditions
What is collective bargaining
|
|
Left-wing: favor working class people
Right-wing: favor business and the wealthy
Left-wing and right-wing economic policies favor what groups/entities? (Must answer both.)
|
passive, small scope government
What kind of government does the supply-side economic theory support?
|
information economy;
policy area: the role of government as new, faster technologies come to market
What kind of an economy is America moving towards and what is one policy area that will result from this transition?
|
voting
Americans have given up certain economic freedoms for the greater good by ____.
|
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