All Flashcards
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.
Keynesian vs. Supply-Side Economics?
Keynesian: Active government, fiscal policy | Supply-Side: Limited government, tax cuts.
Liberal vs. Conservative Economics?
Liberal: More regulation, social programs | Conservative: Less regulation, individual responsibility.
Fiscal vs. Monetary Policy?
Fiscal: Government spending/taxation | Monetary: Central bank, money supply/interest rates.
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.