ECO 12 D02W

 Bronx Community College
Social Science Department
Macroeconomics ECO 12
Spring 2026

Assignment 4

Instructions: Use economic vocabulary to answer the following questions in 4-5 complete sentences.

1. Identify the purposes, tools, and limitations of fiscal policy.
2. Explain how built-in stabilizers moderate business cycles.
3. Discuss the problems that governments may encounter in enacting and applying fiscal policy.
4. Explain the functions of money.
5. Describe the components of the U.S. money supply.
6. Describe what "backs" the money supply.
7. Discuss the structure of the Federal Reserve.
8. Identify the functions and responsibilities of the Federal Reserve.
9. Explain the tools of monetary policy, including open-market operations, forward guidance,
and the administered rates.
10. Define the FED's dual mandate and explain how conflicts can arise between meeting the
inflation target and the unemployment target.