Comprehensive study of GED social studies covering fundamental concepts and advanced applications.
Governments play a big role in shaping the economy through policies, taxes, and spending.
Fiscal policy involves how the government collects money (taxes) and spends it (public services, infrastructure). When the government spends more, it can boost the economy—spending less can slow it down.
Managed by the Federal Reserve, monetary policy controls the supply of money and interest rates to keep the economy stable.
These policies affect jobs, inflation, and the cost of living.
Understanding government policy helps you see how decisions made in Washington impact your daily life.
Lowering interest rates makes it cheaper to borrow money, encouraging people and businesses to spend.
Stimulus checks are an example of fiscal policy to boost the economy.
Explains how government policies affect the economy and your life.