AP U.S. Government and Politics / Unit 4: American Political Ideologies and Beliefs
4.9 Ideology and Economic Policy
Notes
- Keynesian economics: government spending can stabilize the economy.
- Supply-side economics: lower taxes and less regulation encourage growth.
- Monetary policy is set by the Federal Reserve.
Practice
Increasing government spending during a recession reflects:
Stimulate demand.
Supply-side economics emphasizes:
Production incentives.
The Federal Reserve controls:
Interest rates and money supply.
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