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24 Cards in this Set
- Front
- Back
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fiscal policy
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the use of government spending and revenue collection to influence the economy
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federal budget
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a plan for the federal government’s revenues and spending for the coming year
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fiscal year
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a twelve-month period that can begin on any date
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office of management and budget
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government office that manages the federal budget
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congressional budget office
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government agency that provides economic data to Congress
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appropriations bill
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a bill that sets money aside for specific spending
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expansionary policies
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fiscal policies, like higher spending and tax cuts, that encourage economic growth
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classic economics
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the idea that free markets can regulate themselves
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productive capacity
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the maximum output that an economy can produce without big increases in inflation
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demand-side economics
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the idea that government spending and tax cuts help an economy by raising demand
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keynesian economics
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a form of demand-side economics that encourages government action to increase or decrease demand and output
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multiplier effect
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the idea that every one dollar of government spending creates more than one dollar in economic activity
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supply-side economics
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a school of economics that believes tax cuts can help an economy by raising supply
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council of economic advisers
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a group of three respected economists that advise the President on economic policy
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balanced budget
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a budget in which revenues are equal to spending
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budget surplus
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a situation in which the government takes in more than it spends
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budget deficit
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a situation in which the government spends more than it takes in
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hyperinflation
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very high inflation
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treasury bill
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a government bond that is repaid within three months to a year
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treasury note
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a government bond that is repaid within two to ten years
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treasury bond
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a government bond that can be issued for as long as 30 years
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crowding-out effect
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the loss of funds for private investment due to government borrowing
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national debt
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all the money the federal government owes to bondholders
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contractionary policies
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fiscal policies, like lower spending and higher taxes, that reduce economic growth
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