Ch. 15 Flashcards
(20 cards)
bill that sets money aside for specific spending
appropriations bill
budget in which revenues are equal to spending
balanced budget
formal contract to repay borrowed money with interest at fixed intervals
bonds
idea that free markets can regulate themselves
classical economics
fiscal policies, like lower spending and higher taxes, that reduce economic growth
contractionary
government agency that provides economic data to congress
congressional budgetary office (CBO)
loss of funds for private investment due to government borrowing
crowding out effect
fiscal policies, like higher spending and tax cuts, that encourage economic growth
expansionary
plan for the federal government’s revenues and spending for the coming year
federal budget
use of government spending and revenue collection to influence collection
fiscal policy
12 month period that can begin on any date
fiscal year
form of demand-side economics that encourages government action to increase or decrease demand and output
keynesian economics
idea that every dollar of spending creates more than one dollar in economic activity
multiplier effect
all the money the federal government owes to bondholders
national debt
government office that manages the federal budget
office of management and budget (OMB)
maximum output that an economy can produce without big increases in inflation
productive capacity
school of economics that believes tax cuts can help an economy by raising supply
supply side economics
situation in which quantity supplied is greater than quantity demanded; AKA excess supply
surplus
stability, economic growth, full employment
3 macroeconomic goals of government
a situation in which the government spends more than it takes in
deficit
