Federal Budget Process
What is the "Black Budget?"
Is a classified government budget due to security reasons.
What is a "Surplus"?
*Bonus 100pts - When was the last time the U.S had a surplus?
A federal surplus happens when the government spends less than money gained from taxes.
The last time this happened was 2001
What is "Budgeting"?
-How money is raised
-How money is spent
- An organization's priorities
What are "Furloughs"?
When Congress is not able to pass budgets, only essential employees can continue to work, all others go home without pay
What is the twin roles of budgets
-Shaping national economy
What is a "Deficit"?
The government's spending is higher than the revenue gained from taxes
What is the "Black Budget" used for
The black budget is an account of expenses and spending related to military research and covert operations.
- spy satellites
- research and development of defense programs
- military drone programs.
What is "Microeconomics"?
Microeconomics is the study of broad interactions between government economic activity and the behavior of economy
What is the "Principle of Balance"?
Resources should be distributed among different uses so that the marginal return of satisfaction is the same for all of them
What is "Monetary Policy"?
How the Federal Reserve influences the economy through interest rates and money supply
How can the government offset inflation and recessions from occurring.
Taxing and spending can be used to moderate cycles of the economy
What happens when state and local governments run a deficit?
Trick question!
They are not allowed to!
:P
When Congress is not able to get a budget finalized, what goes into place so that the government is still able to function.
Continuing Resolutions
What are Keynesian Economics?
An economic principal that states; the government should run a surplus in good economic periods so that the economy does not grow too quickly and in poor economic periods the government should run a deficit to keep the economy from getting too slow.
What is one out of the three main questions for those who are planning budgets?
What and how much should the government do?
Who decides?
How do the people & public officials decide?