chapter 15

Question 1

fiscal policy

Answer 1

federal budget taxation and spending

Question 2

office of management budget

Answer 2

out of executive branch, leaders are appointed by pres, keep track of actutal budget.

Question 3

federal budget

Answer 3

good for 1 year
oct 1-sept 30
must be passed by congress appointed by pres does NOT have to be balanced

Question 4

appropriation bills

Answer 4

bills that deal with money must start in the house of reps it does not have to be passed by the house

Question 5

expansionary fiscal policy

Answer 5

fighting a ressesion putting money into the economy, decrease tax and increase spending

Question 6

inflationay bias

Answer 6

politians are mroe likely to cut taxes raise spending increse debt so they can stay in office end result inflation

Question 7

limits of fiscal policy

Answer 7

1. hard to predict future
2. delaying result
3. political pressure

Question 8

john caynes

Answer 8

demand side economics (FDR) if you give people money they will spend it

Question 9

Say

Answer 9

supply-side if you produce goods someone will buy them

Question 10

adam smith

Answer 10

“a wealth of nations” Lazee Fare” gov should stay out of business

Question 11

hampton san clair

Answer 11

“the jungle” about the packing industry start of socialism

Question 12

national debt

Answer 12

16.2 trillion dollars held through US secrities (savings bonds)

Question 13

budget surplus

Answer 13

gov receivrs more money than what they spend

Question 14

budger deficis

Answer 14

spend more money than what they bring in

Question 15

crowding-out effect

Answer 15

(oppurtunity cost) nat debt hurts the country because money foes to debt instead of into businesses

Question 16

Gramm Rudman Act

Answer 16

you cannot spend more moeny than what you budgeted for if you do, it is taken out of next years budget. the law says it is illeagle to spend more money than what is budgeted.