1. Starter- Write the questions. What kind of committee deals with compromises between both houses of Congress? _________ 2/3 of both houses of Congress must agree to _____________ a Presidential veto. Zoning issues are heard at the _______________ level of government. City police handle issues in ___________________ areas. The War Powers Act took power away from the ________________ branch in declaring war. Which state courts have original jurisdiction in capital felonies? What are city or town laws called?

2. 9.06 Effects of Monetary and Fiscal Policy on the US Economy

3. Concepts Fiscal policy – How the government chooses to spend money and how it chooses to tax households and businesses Monetary Policy – How much the government restricts or releases the flow of money into the economy

4. Fiscal Policy The government can reduce taxes which leads to businesses investing more in the economy – This can lead to inflation. – Raising taxes can have the opposite effect. Government spending goes along with taxes – Without tax money, the government cannot spend as much as it would like.

5. Monetary Policy The Federal Reserve controls the amount of money that is circulating in the economy It does this in three ways – By raising or lowering the reserve requirement on banks – By raising or lowering the discount rate – By the sale or purchase of US treasury bonds

6. 9.07- Economic factors Economic factors – Scarcity – Inflation, recession, and depression – The state of the stock market Bull market- when the stock market sees a rise in prices of stocks Bear market- when fewer people are investing and stock prices tend to fall

7. Environmental Factors Companies must now produce goods which are more environmentally friendly – Clean Air Act – Clean Water Act Everyone wants to be GREEN.