Budget
Define GDP
Total of all goods and services produced in the economy in a given year
Difference between debt and deficit
deficit is when the government spends more than it takes in during a given year, debt is multiple deficits
Who was the father of monetarism
Milton Friedman
What is the Fed?
the Federal Reserve
When does a fiscal year start and end?
October 1st-September 30
What is the CBO and what does it stand for?
a. its the legislative counterpart to the OMB, collects information, advises
b. congressional budget office
What makes up someone's taxable income?
Gross income - deductions= taxable income
Define keynesian economics
government spending and "economic safety nets" are key to economic stability
Who is the chair of the fed?
Jerome Powell
What is a sequester and what act is it associated with?
a. Automatic spending cuts, across the board
b. The Gramm-Rudman Act
Why has mandatory spending increased?
entitlement programs and the population living longer
Define globalization
The interconnectedness of economies and societies around the world
Who popularized supply side economics?
Reagan
What does OMB stand for and what is one of its functions?
a. Office of Management and Budget
b. include but not limited to: does audits, works the president/congress to set the budget,information management
Which political party believes:
in the least amount of gov interference in economy, government is only for property rights, making sure nothing hinders voluntary trade, no regulation, minimal government programs
Libertarians
What happens if the budget is not agreed upon by october 1st?
a continuing resolution, which extends the deadline. If the new deadline is reached and theres still no resolution, the government shuts down, and nonessential workers don't come in.
What is a budget resolution?
A statement that sets a ceiling for government spending
Define bailout and which economic system supports it
a. gov should provide financial assistance to failing industries
b. economic planning
What does the CEA do and what does it stand for?
a. economic reports, economic advice for the POTUS, and predicting trends
b. Council of economic advisers
What are some characteristics of the fed chair?
no term limits, four year terms, approved by senate, appointed by president
What are the top three sources of federal revenue?
Individual income taxes, payroll taxes (social security/medicare), corporation income tax
Define laissez-faire
hands off, free market with minimal regulations
What is the thesis of supply side economics?
lower taxes on business owners means they will invest in their businesses which fuels the economy (ie hiring people)
Who is the current secretary of treasury?
Janet Yellen
What government program receives over half of the yearly discretionary spending?
National defense