Study Questions

  1. Explain the five interrelated goals of U.S. economic policy. What is the difference between debt and deficit? How is the United States doing at accomplishing its five goals?
  2. What is the Federal Reserve responsible for, what are its goals, how is it set up, and what activities does it use to accomplish its goals?
  3. Define fiscal policy. List, define, and give examples of the tools that it employs, including regulation, incentives, subsidies, taxation, and government spending.
  4. What is the difference between regressive and progressive taxes?
  5. Describe the budgetary process.
  6. Why are entitlement programs a challenge for our economy?
  7. Describe the reasons behind the new attention to the issue of income inequality in the United States.