Chapter 15: Fiscal Policy Flashcards
1
Q
How our elected officials
A
- Borrow
- Tax
- Spend
to aid the economy
2
Q
What are the tools of Fiscal Policy?
A
- Tax incentives, subsidies
- Spending on specific projects
- Borrowing at rates are moving
- Progressive Income taxes
- Law to target taxes & spending
3
Q
What is a supply-sider?
A
Increases in the supply of good leads to economic growth.
4
Q
What is a demand-sider
A
The idea that government spending tax cuts help and economy by raising demand.
5
Q
Each year a budget is created by the President that goes to Congress that falls into one of 3 categories
A
- Balanced Budget
- Budget surplus
- Budget deficit
6
Q
What is a Budget Deficit
A
When you spend more than you make
7
Q
What is a Budget Surplus
A
An excess of government revenue over government spending.
