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31 Cards in this Set
- Front
- Back
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what occurs when the government in one year spends more mone than it takes in from taxes
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deficit
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the total deficit from the first presidency down the the present
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national debt
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the total of all goods and services produced in the economy during the given year
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gross domestic product
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the belief that inflation occurs when too much money is chasing too few goods
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monetarism
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the belief that government must manage the economy by spending more money when in a recession and cutting spending when there is an inflation
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Keynesianism
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the belief that government plans, such as wage and price controls or the direction of investment, can improve the economy
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economic planning
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the belief that lower taxes and fewer regulations will stimulate the economy
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supply-side theory
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the belief that a combination of monetarism, lower federal spending, and supply-side economics will stimulate the economy
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Reaganomics
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managing the economy by altering the supply of money and interest rates
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monetary policy
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managing the economy by the use of tax and spending laws
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fiscal policy
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a document that states tax collections,spending levels, and the allocation of spending among purposes
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budget
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for the federal government, October 1 through the following September 30
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fiscal year
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a congressional decision that states the maximum amount of money the government should spend
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budget resolution
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a claim for government funds that can't be changed without violating the rights of the claimant
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entitlements
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automatic spending cuts
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sequester
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In a typical year, how much are bond interest repayments?
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Thurd-biggest item on the national budget
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What are two ways to get rid of annual and national debt?
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raise taxes and cut spending
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What does the government do when the people want new programs but there is not money?
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They tax the minority
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What happens when a the government says they want to do a tax cut but a small group of polititians don't agree?
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They only tax cut ordinary people
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What are the four theories on how to manage the economy?
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Monetarism, Keynesianism, Planning, and Supply-side theory
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What is Reaganomics a combination of?
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monetarism, supply-side tax cuts, and domestic budget cut
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suggests that the proper thing for government to do is to have a steady, predictable increase in the money supply at a rate equal to the country's growth.Otherwise free market should dominate. Conservative government
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Monetarism
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The government should manage the demand of the economy. Activist government
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Keynesianism
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Which economic ideology is conservative?
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Monetarism or suppy-side tax cuts
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Which economic ideology is liberal?
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Keynesian
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Which economic ideology is socialist?
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Planning
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What is the name of the three people who are just as important in economic policy making as the President?
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troika
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Who are the people that make up the troika?
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Chairman of the Council of Economic Advisers
Director of the Office of Management and Budget Secretary of the Treasury |
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When did federal income tax come in?
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1913
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How did the conflict between the well-off (Republicans) and the not so well-off (Democrats) withstand the income tax debate?
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Democrats agreed to the Republican's want for loopholes in order to encourage society to save and invest
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What would be an example of economic client politics?
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Loophole politics
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