Is it in the budget?
a written document estimating the federal government's revenue and authorizing its spending for the coming year
federal budget
the use of government spending and revenue collection to influence the economy
fiscal policy
a school of thought based on the idea that free markets regulate themselves
classical economics
the maximum output that an economy can sustain over a period of time without increasing inflation
productive capacity
a situation in which budget revenues exceed expenditures
budget surplus
a bill that authorizes a specific amount of spending by the government
appropriations bill
a fiscal policy used to encourage economic growth, often through increased spending or tax cuts
expansionary policy
a school of thought based on the idea that demand for goods drives the economy
demand-side economics
the idea that every one dollar change in fiscal policy creates a change greater than one dollar in the national income
multiplier effect
a situation in which budget expenditures exceed revenues
budget deficit
any 12-month period used for budgeting purposes
fiscal year
a fiscal policy used to reduce economic growth, often through decreased spending or higher taxes
contractionary policy
a school of thought that uses demand-side theory as the basis for encouraging government action to help the economy
Keynesian economics
a tool of fiscal policy that increases or decreases automatically depending on changes in GDP and personal income
automatic stabilizer
a government bond with a maturity date of 26 weeks or less
Treasury bill
a government bond that is issued with a term of 30 years
Treasury bond
the total amount of money the federal government owes to bondholders
national debt
a school of thought based on the idea that the supply of goods drives the economy
supply-side economics
the loss of funds for private investment caused by government borrowing
crowding-out effect
a government bond with a term from 2 to 10 years
Treasury note