1. Explain the five interrelated goals of U.S. economic policy. What is the difference between debt and deficit? How is the United States doing at accomplishing its five goals?
2. Define fiscal policy. List and define and give examples of the major tools that it employs, including regulation, incentives, subsidies, taxation, and government spending.
3. Define monetary policy. Give examples of how the Federal Reserve can control the amount of money in circulation.
4. Why are entitlement programs a challenge for our economy?
5. Describe the reasons behind the new attention to the issue of income inequality in the United States.
6. Discuss challenges faced by state governments to keep their fiscal houses in order.

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Five Interrelated Goals of US Economic Policy Maximum Employment Aiming for low unemployment rates ensuring everyone who wants a job can find one Stable Prices Keeping inflation under control preventi... View the full answer