AP U.S. Government and Politics Flashcards: Ideology and Economic Policy
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 10 cards to help you master important concepts.
Who is responsible for implementing fiscal policy?
Congress and the president are responsible for taking actions related to fiscal policy.
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Who is responsible for implementing fiscal policy?
Congress and the president are responsible for taking actions related to fiscal policy.
What are the two primary goals of the Federal Reserve?
The Federal Reserve (the Fed) seeks to achieve maximum employment and price stability through its monetary policy actions.
Which political ideology favors the most government regulation of the marketplace?
Liberal ideologies favor more governmental regulation of the marketplace.
A politician advocates for reducing the power of the Federal Reserve and letting the market set interest rates. This aligns with which ideology's view on marketplace regulation?
This aligns with a libertarian ideology, which favors little or no regulation of the marketplace beyond protecting property rights and voluntary trade.
How does the Federal Reserve's status as an independent agency relate to its function?
As an independent agency, the Fed can implement monetary policy to achieve maximum employment and price stability without direct influence from Congress or the president.
What is fiscal policy?
Fiscal policy consists of actions taken by Congress and the president to influence economic conditions, and includes Keynesian and supply-side positions.
What are Keynesian and supply-side positions?
Keynesian and supply-side positions are two different approaches to fiscal policy, which is implemented by Congress and the president.
What is the primary tool of monetary policy used by the Federal Reserve?
The Federal Reserve's primary monetary policy tool is its ability to influence interest rates to affect broader economic conditions.
How does the conservative ideology view government regulation of the marketplace?
Conservative ideologies favor fewer regulations on the marketplace compared to liberal ideologies.
What is monetary policy?
Monetary policy consists of actions taken by the Federal Reserve (the Fed) to influence interest rates which affect broader economic conditions.