ECO 372 Week 4 Worksheet

Complete the Worksheet.

Click the Assignment Files tab to submit your assignment.

Week 4 Assignment

Fill in the missing words from the list below:

Fiscal policy

Monetary policy

Deficit

Surplus

Recession

Boom

Increasing

Decreasing

Increases

Decreases

The use of government spending and taxing by Congress in order to influence conditions in the

macroeconomy is called [                     ]. When government expenditures exceed net taxes, a budget [                     ] exists.  When government expenditures are less than net taxes, a budget [                     ] exists.

Keynes recommended the use of expansionary fiscal policy when the economy experiences a

[                     ]. According to this analysis, the government can cause aggregate demand to shift to the right by [                     ] taxes or by [                     ] government spending. When aggregate demand increases, the economy’s equilibrium level of output [                     ] so there are more jobs and the rate of unemployment[                     ].