Government Economic Policies and Programs Quiz

Tax policy is utilized by governments to stimulate economic growth through adjustments in taxation rates and incentives.

The Consumer Price Index (CPI) measures changes in the prices of a basket of goods and services consumed by households, reflecting inflation or deflation over time.

Medicaid is a government program in the United States that provides health coverage to low-income individuals and families.

Capitalism is an economic philosophy that advocates for minimal government intervention in the economy and emphasizes the role of free markets in allocating resources and determining prices.

Expansionary monetary policy aims to boost economic growth by increasing the money supply and lowering interest rates.

Keynesian economics advocates for government intervention during downturns to stabilize the economy through increased spending and decreased taxes.

Austerity refers to the reduction of government spending, often as a measure to address budget deficits or stabilize the economy.

Supply-side economic policies aim to enhance productivity and efficiency in the economy by focusing on factors such as reducing regulatory burdens and incentivizing investment.

Sovereign wealth funds are established to invest surplus foreign exchange reserves in various assets for long-term growth and diversification.

The IMF provides financial assistance and policy advice to member countries experiencing economic difficulties to promote stability in the international monetary system.

The central bank implements monetary policy by issuing currency, regulating the money supply, and managing interest rates to achieve economic objectives such as price stability and full employment.

Countercyclical fiscal policy aims to mitigate economic downturns by increasing government spending and decreasing taxes to stimulate aggregate demand and boost economic activity.