You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Instructions

Answer the following questions based on what you have learned about Keynesian Economic Theory so far. Number your answers.

1. What did Keynes want to replace the missing private investment with?
2. How does the government finance a deficit?
3. What three tools did Keynes employ?
4. What is the multiplier?
5. Keynes's analysis laid the basis for the field of macroeconomics, which treats the economy as a whole and focuses on the government's use of fiscal policy and includes what?

Fiscal policy is the use of taxation and government spending to control the economy and work toward low unemployment, low inflation, and steady economic growth.

Activity

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Instructions

Watch the video and then answer the following question.

1. What does Keynes advise the President to do?

https://www.youtube.com/watch?v=QHqoxNOYIOo Fiscal policy is the use of taxation and government spending to control the economy and work toward low unemployment, low inflation, and steady economic growth.

Activity

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Fiscal Policy Videos

Instructions

Watch the following videos and take notes so you are prepared to answer the questions that are coming up.

https://www.youtube.com/watch?v=otmgFQHbaDo

https://www.youtube.com/watch?v=1qhJPqyJRo8 Fiscal policy is the use of taxation and government spending to control the economy and work toward low unemployment, low inflation, and steady economic growth.

Activity

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Instructions

Answer the following questions. Number your answers.

1. What is aggregate demand?
2. Which way would aggregate demand shift if we were using expansionary fiscal policy?
3. Which way would aggregate demand shift if we were using contractionary fiscal policy?
4. Why does the government need to move aggregate demand along?

Introduction

Fiscal policy is the use of taxation and government spending to control the economy and work toward low unemployment, low inflation, and steady economic growth.

Activity

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Supply Side Economics

Instructions

Read about Supply-side economics on Investopedia Understanding Supply-side economics.

Supply Side Economics

Introduction

Fiscal policy is the use of taxation and government spending to control the economy and work toward low unemployment, low inflation, and steady economic growth.

Activity

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Instructions

Answer the following questions.

1. How is supply-side economics different than the Keynesian theory?
2. What is Friedrich Hayek famous for? Activity

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Instructions

Answer the following questions.

1. How is supply-side economics different than the Keynesian theory?
2. What is Friedrich Hayek famous for?

You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Watch the following video and take notes.

https://www.youtube.com/watch?v=GTQnarzmTOc You have been nominated to serve in the Office of Management and Budget (OMB), a special unit of the Executive Branch of government that is responsible for managing the federal government's budget. There is just one problem; you are completely uneducated in this area!

Answer this key question:What effect does taxation and government spending have on the economy?

Instructions

Answer the following questions.

1. Compare and contrast three facts about each theory, Keynes vs Hayek. You may want to make a table or a venn diagram.
2. Explain which theory you think is better and why.
3. answer all the sections correctly and throughly make sure to precisely to do so

Answer rating: 100% (QA)

Keynesian Economic Theory 1 Keynes wanted to replace missing private investment with government spending 2 The government finances a deficit through b... View the full answer