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What is the purpose of environmental regulations?
To protect the environment and public health by limiting pollution and resource depletion.
What is the purpose of increasing minimum wage?
To provide a living wage for workers and reduce income inequality.
What is the purpose of reducing taxes on businesses?
To stimulate economic growth by encouraging investment and job creation.
What is the purpose of expansionary fiscal policy during a recession?
To increase aggregate demand and stimulate economic activity.
What is the purpose of contractionary monetary policy during inflation?
To reduce aggregate demand and slow down the rate of price increases.
Define 'Liberal Economics'.
Favors more government regulation of the marketplace to promote fairness and economic opportunity.
Define 'Conservative Economics'.
Favors little to no government regulation, believing free markets drive economic growth.
Define 'Socialism'.
Supports active government role to ensure fair and equitable economic operation.
Define 'Progressivism'.
Supports active government role to promote fairness, equality, and protect rights.
Define 'Centrism'.
Supports a balanced approach to government intervention, avoiding market interference.
What is 'Fiscal Policy'?
Government spending and taxation to influence the economy.
What is 'Monetary Policy'?
Central bank's use of money supply and interest rates to influence the economy.
Define 'Expansionary Fiscal Policy'.
Increase spending, reduce taxes; used during recessions.
Define 'Contractionary Fiscal Policy'.
Reduce spending, increase taxes; used to cool down an economy.
Define 'Expansionary Monetary Policy'.
Increase money supply, lower interest rates to stimulate growth.
Define 'Contractionary Monetary Policy'.
Decrease money supply, raise interest rates to slow down growth.
What is 'Keynesian Economics'?
Active government role using fiscal/monetary policies to stabilize the economy.
What is 'Supply-Side Economics'?
Limited government role; cutting taxes/regulations to create a favorable business environment.
Cause and effect of increased minimum wage?
Cause: Liberal policy goal, Effect: Increased worker income, potential job losses.
Cause and effect of reduced business regulations?
Cause: Conservative policy goal, Effect: Increased business efficiency, potential environmental damage.
Cause and effect of expansionary fiscal policy?
Cause: Recession, Effect: Increased demand, potential inflation.
Cause and effect of contractionary monetary policy?
Cause: High inflation, Effect: Slowed economic growth, potential recession.
Cause and effect of tax cuts on businesses?
Cause: Supply-side economics, Effect: Increased investment, potential income inequality.