Fiscal Policy

Question 1

Fiscal Policy

Answer 1

The use of government spending and revenue collection to influence the economy

Question 2

Federal Budget

Answer 2

A written document estimating the federal government’s revenue and authorizing its spending for the coming year

Question 3

Fiscal Year

Answer 3

October 1 - September 30

Question 4

Appropriations Bill

Answer 4

A bill sets aside for specific spending

Question 5

Expansionary Policy

Answer 5

A fiscal policy used to encourage economic growth, often through increased spending or tax cuts

Question 6

Contractionary Policy

Answer 6

A fiscal policy used to reduce economic growth, often through decreased spending or higher taxes

Question 7

Classical Economics

Answer 7

A school of thought based on the idea that free markets regulate themselves

Question 8

Demand-Side Economics

Answer 8

Idea that government spending and tax cuts help an economy by increasing demand

Question 9

Keynesian Economics

Answer 9

A school of thought that uses demand-side theory as the basis for encouraging government action to help the economy

Question 10

Supply-Side Economics

Answer 10

A school of economics that believes tax cuts can help an economy by increasing supply

Question 11

Budget Surplus

Answer 11

A situation in which budget revenues exceed expenditures

Question 12

Budget Deficit

Answer 12

A situation in which budget expenditures exceed revenues

Question 13

National Debt

Answer 13

The total amount of money the federal government owes to bondholders

Question 14

National Deficit

Answer 14

How much money over budget the government is in a given year

Question 15

Office of Management and Budget (OMB)

Answer 15

Government office that manages the federal budget

Question 16

Congressional Budget Office (CBO)

Answer 16

Government agency that provides economic data to congress