Anything that increases the government's budget deficit during a recession and increases budget surplus during inflation without requiring explicit action by policymakers
What is a built-in or automatic stabilizer?
100
lag between time action is administered and the time it affects output, employment, and price level
What is operational lag?
200
JEC
What is the Joint Economic Committee?
200
policy taken to control demand-pull inflation
What is contractionary fiscal policy?
200
name one of two ways to dispose of a surplus
What is reducing debt or impounding?
200
Average tax rate rises with GDP
What is a progressive tax system?
200
lag between time action is needed and time action is initiated
What is administrative lag?
300
Works with Congress to investigate economic problems of natural interest
What is JEC (a.k.a. Joint Economic Committee)?
300
policy taken during a recession
What is expansionary fiscal policy?
300
the best way to finance a deficit
What is money creation?
300
Average tax rate falls as GDP rises
What is a regressive tax system?
300
time between beginning of recession or inflation and the certain awareness that it’s actually happening
What is recognition lag?
400
Assists and advises the president
What is the CEA (Council of Economic Advisors)?
400
Policy where net exports increase
What is contractionary policy?
400
the best way to dispose of a surplus
What is impounding?
400
Average tax rate remains constant as GDP rises
What is a proportional tax system?
400
Expansionary fiscal policy (deficit spending) may increase the interest rate and reduce private spending, thereby weakening or canceling the stimulus of the expansionary policy
What is the crowding out effect?
500
Commits the Federal government to all practicable means consistent with the market system to promote and to maintain economic stability
What is the Employment Act or 1946?
500
government policy that deals with government spending and tax collection
What is fiscal policy?
500
tax revenues are not put back into the economy
What is impounding?
500
reduces spending and aggregate demand
What is taxes?
500
destabilizes the economy by reducing taxes and increasing government expenditures before elections and raising taxes and lowering expenditures after elections