1. Identify the group that conducts fiscal policy.

2. Identify the tools, or instruments used, to implement fiscal policy

3. Identify the appropriate fiscal policy for a given aggregate demand shock.

4. Explain how the government pays for fiscal policy changes.

5. Define the (spending) multiplier effect and explain its role in fiscal policy

6. Identify the limitations of fiscal policy

7. Define crowding out and explain the effect it has on the economy

8. Identify the different lags of fiscal policy

9. Explain why real shocks create a dilemma for the fiscal policy makers.

10. Explain how fiscal policy could actually make things worse.

11. List the conditions when fiscal policy is most likely to be effective.

12. Explain the effect fiscal policy can have on the Federal Budget deficit and nation debt.

13. Explain the tradeoff involved with fiscal policy, between short run stability and potentially slower long run growth