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Flashcards in Chapter 15 Terms Deck (25)
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1

A bill that sets money aside for specific spending

Appropriations bill

2

A government program that changes automatically depending on GDP and a person's income

Automatic stabilizer

3

A budget in which revenues are equal to spending

Balanced budget

4

A situation in which the government spends more than it takes in

Budget deficit

5

A situation in which the government takes in more than it spends

Budget surplus

6

The idea that free markets can regulate themselves

Classical economics

7

Government agency that provides economic data to congress

Congressional Budget Office (CBO)

8

Fiscal policies, like lower spending and higher taxes, that reduce economic growth

Contractionary policies

9

A group of three respected economists that advise the President on economic policy

Council of Economic Advisers (CEA)

10

The loss of funds for private investments due to government borrowing

Crowding-out effect

11

The idea that government spending and tax cuts help an economy by raising demand

Demand-side economics

12

Fiscal policies, like higher spending and tax cuts, that encourages economic growth

Expansionary policies

13

A plan for the federal government's revenues and spending for the coming year

Federal budget

14

The use of government spending and revenue collection to influence the economy

Fiscal policy

15

A twelve-month period that can begin on any date

Fiscal year

16

Very high inflation

Hyperinflation

17

A form of demand-side economics that encourages government action to increase or decrease demand and output

Keynesian economics

18

The idea that every one dollar of government spending creates more than one dollar in economic activity

Multiplier effect

19

All the money the federal government owes to bond holders

National debt

20

Government office that manages the federal budget

Office of management and budget (OMB)

21

The maximum output that an economy can produce without big increases in inflation

Productive capacity

22

A school of economics that believes tax cuts can help an economy by raising supply

Supply-side economics

23

A government bond that can be rapid within three months to a year

Treasury bill

24

A government bond that can be issued for as long as 30 years

Treasury bond

25

A government bond that is repaid within two to ten years

Treasury note