Understanding Fiscal Policy
Fiscal Policy Options
Budget Deficits and the National Debt
So Random
Other Stuff
100
The branch of government in which tax and spending bills are created
What is the Legislature?
100
The idea that every one dollar of government spending creates more than one dollar in economic activity.
What is the multiplier effect?
100
The loss of funds for private investment due to government borrowing.
What is crowding-out effect?
100
The mathematician turned economist who created GDP, the CPI and the unemployment rate, along with demand-side fiscal policy?
Who is John Maynard Keynes?
100
Government entities that put together the federal budget.
What is the Congress and the White House?
200
Fiscal policies, like higher spending and tax cuts, that encourage economic growth.
What are expansionary policies?
200
The idea that government spending and tax cuts help an economy by raising demand.
What is demand-side economics?
200
All the money the federal government owes to bondholders.
What is the national debt?
200
Government programs that changes automatically depending on GDP and a person's income, such as taxes or unemployment benefits.
What is an automatic stabilizer?
200
A situation in which the government takes in more than it spends.
What is a budget surplus?
300
The use of government spending and revenue collection to influence the economy.
What is fiscal policy?
300
Form of demand-side economics that encourages government action to increase or decrease demand and output.
What is Keynesian Economics?
300
The amount by which government spending exceeds tax revenues in a single year
What is a budget deficit?
300
A curve that predicts the effects of changes in the tax rate on tax revenues.
What is the Laffer Curve?
300
Between cutting taxes and increasing government spending, this has the biggest immediate positive impact on GDP
What is increased government spending?
400
Fiscal policies, like lower spending and higher taxes, that reduce economic growth.
What are contractionary policies?
400
The idea that free markets can regulate themselves.
What is classical economics?
400
A budget category for programs that require a certain level of expense that cannot be directly controlled
What is mandatory spending?
400
The theory that says tax cuts for those at higher incomes will eventually help those in the lower income levels
What is trickle down theory?
400
The decade in which Ronald Reagan reduced income taxes, but increased spending.
What is the 1980's?
500
A plan for the federal government's revenues and spending for the coming year.
What is the federal budget?
500
A school of economics that believes tax cuts can help an economy by raising supply.
What is supply-side economics?
500
What the government sells to people and financial institutions in order to borrow money.
What is a Treasury Note (or Bond?
500
A budget in which revenues are equal to spending.
What is a balanced budget?
500
The economic event that prompted the use of any fiscal policy at all for the first time in U.S. history.
What is The Great Depression?
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