Economics 3.03 Fiscal Policy
Part A:
1.Define fiscal policy. Include the goals and tools of fiscal policy, and the entity that controls it.
Fiscal policy is government collection of revenue used to fund protection and benefits for citizens, economic growth, and economic stability. The tools of fiscal policy are taxing
and spending, and the U.S. government controls it.
2.Should Congress create a law mandating a balanced federal budget? Support your position with evidence from the lesson.
I believe a law should be passed by Congress mandating a balanced federal budget. The U.S. already has trillions of dollars in debt and it shouldn’t just spend more money without thinking just because they can sell bonds to pay for things. I think the government shouldn’t rely on their citizens buying bonds from them because it is not reliable. Like it says in the lesson, people may buy fewer investments from the government out of fear that they will lose money because of how bad the debt is.
Part B: Scan reputable news sites for recent articles relating to fiscal policy from within the last six months. For example, you might find that Congress is currently debating a new spending bill or just agreed to a tax cut. This list of search terms will help your search. Once you find and read
the article, fill in the requested information and respond to the four questions that follow in complete sentences .
Article title/headline: Financial crisis nears as McCarthy takes debt ceiling plan to Wall Street
Source (URL): https://www.washingtonpost.com/business/2023/04/17/debt-ceiling-crisis-kevin-
mccarthy/ Date of publication: April 17, 2023
1.Describe the fiscal policy action that is discussed in the article, including its status (such as under debate, approved, or rejected).
The fiscal policy action that is discussed in the article is the increase of the nation’s debt ceiling. It is still under debate whether it will be approved or not.
2.Would the fiscal policy action discussed in the article promote price stability, full employment, and/or economic growth? Explain.
Part A:
1.Define fiscal policy. Include the goals and tools of fiscal policy, and the entity that controls it.
Fiscal policy is government collection of revenue used to fund protection and benefits for citizens, economic growth, and economic stability. The tools of fiscal policy are taxing
and spending, and the U.S. government controls it.
2.Should Congress create a law mandating a balanced federal budget? Support your position with evidence from the lesson.
I believe a law should be passed by Congress mandating a balanced federal budget. The U.S. already has trillions of dollars in debt and it shouldn’t just spend more money without thinking just because they can sell bonds to pay for things. I think the government shouldn’t rely on their citizens buying bonds from them because it is not reliable. Like it says in the lesson, people may buy fewer investments from the government out of fear that they will lose money because of how bad the debt is.
Part B: Scan reputable news sites for recent articles relating to fiscal policy from within the last six months. For example, you might find that Congress is currently debating a new spending bill or just agreed to a tax cut. This list of search terms will help your search. Once you find and read
the article, fill in the requested information and respond to the four questions that follow in complete sentences .
Article title/headline: Financial crisis nears as McCarthy takes debt ceiling plan to Wall Street
Source (URL): https://www.washingtonpost.com/business/2023/04/17/debt-ceiling-crisis-kevin-
mccarthy/ Date of publication: April 17, 2023
1.Describe the fiscal policy action that is discussed in the article, including its status (such as under debate, approved, or rejected).
The fiscal policy action that is discussed in the article is the increase of the nation’s debt ceiling. It is still under debate whether it will be approved or not.
2.Would the fiscal policy action discussed in the article promote price stability, full employment, and/or economic growth? Explain.
