Chapter 18 Section 2

Question 1

Fiscal Policy

Answer 1

Managing the economy by the use of tax and spending laws

Question 2

Fiscal Year

Answer 2

For the federal government, October 1st through the following September 30th

Question 3

Globalization

Answer 3

The growing integration of the economies and societies of the world

Question 4

Gross Domestic Product

Answer 4

The total of all goods and services produced in the economy during a given year

Question 5

Inflation

Answer 5

A general increase in prices and fall in the purchasing value of money.

Question 6

Keynesianism

Answer 6

The belief that the government must manage the economy by spending more money when in recession and cutting spending when their is inflation

Question 7

Monetarism

Answer 7

The belief that inflation occurs when too much money is chasing too few goods

Question 8

Monetary Policy

Answer 8

Managing the economy by altering the supply of money and interest rates

Question 9

National Debt

Answer 9

The total deficit from the first presidency down to the present

Question 10

Sequester

Answer 10

Automatic spending cuts

Question 11

Supply-Side Theory

Answer 11

The belief that lower taxes and fewer regulations will stimulate the economy

Question 12

Unemployment Rate

Answer 12

A measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.