Economics Chapter 15 Vocabulary – Flashcards
Flashcard maker : Michael Seabolt
Fiscal Policy:
Government use of taxing and spending to stabilize the economy
Federal Budget:
A plan for the federal government’s revenues and spending for the coming year
Fiscal Year:
A twelve-month period that can begin on any date
Office of Management and Budget (OMB):
Government office that manages the federal budget
Congressional Budget Office (CBO):
Government agency that provides economic data to Congress
Appropriations Bill:
A bill that sets money aside for specific spending
Expansionary Policies:
Fiscal policies like higher spending and tax cuts, that encourage economic growth
Contractionary Policies:
Fiscal policies like lower spending and higher taxes, that reduce economic growth
Classical Economics:
The idea that free markets can regulate themselves
Demand-Side Economics:
The idea that government spending and tax cuts help an economy by raising demand
Keynesian Economics:
A form of demand-side economics that encourages government action to increase or decrease demand and output
Supply-Side Economics:
A school of economics that believes tax cuts can help and economy by raising supply
Multiplier Effect:
The idea that every one dollar of spending creates more than one dollar in economic activity
Automatic Stabilizer
A government program that changes automatically depending on GDP and a person’s income
Council of Economic Advisors (CEA):
A group of three respected economists that advise the president on economic policy
Budget Deficit:
A situation in which the government spends more than it takes in
National Debt:
All the money the federal government owes to bondholders
