Conceptual Understanding - SS.12E.4.a:
Policy makers establish economic goals related to economic indicators including the Gross National Product (GNP), Gross Domestic Product (GDP), Consumer Price Index (CPI), employment and interest rates, and aggregate supply and demand.

Conceptual Understanding - SS.12E.4.b:
The president and Congress determine fiscal policy by establishing the level of spending and taxing in the annual budget. Some tax programs are designed to provide incentives to individuals and businesses that influence private sector spending, saving, and investment.

Conceptual Understanding - SS.12E.4.c:
The Federal Reserve is the government institution responsible for managing the nation’s monetary policy including regulating the amount of money in circulation and interest rates.

Conceptual Understanding - SS.12E.4.d:
Trade policies and agreements (tariffs, quotas, embargoes) set the rules for trade between the United States and other nations. Agreeing on such rules is very difficult because each nation has different interests, and each nation has special interests trying to influence the negotiations.