Instructional Video

Khan Academy: Fiscal Policy to Address Output Gaps

Curated by ACT

This video explains how fiscal policy can be used to close output gaps. Fiscal policy means using either taxes or government spending to stabilize the economy. Expansionary fiscal policy can close recessionary gaps and contractionary fiscal policy can close inflationary gaps. [6:56]

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Concepts
government spending, taxes, fiscal policy
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Additional Tags
contractionary fiscal policy, marginal propensity to consume, aggregate supply curve, expansionary fiscal policy, khan academy, khan academy: fiscal policy to address output gaps, inflationary gaps, recession
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Resource Details
Grade
9th - 10th
Subjects
Social Studies & History
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Resource Type
Instructional Videos
Audiences
For Administrator Use
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