Chapter 15 Fiscal Policy Flashcard

Front

Define fiscal policies, like lower spending and higher taxes, that reduce economic growth.

Back

contractionary policies

Front

Fiscal year

Back

a twelve month period that can begin on any date.

Front

a situation in which the government takes in more than it spends.

Back

budget surplus

Front

Definition: a situation in which the government spends more than it takes in.

Back

budget deficit

Front

The idea that every one dollar of government spending creates more than one dollar in economic activity is defined as:

Back

multiplier effect

Front

A plan for the federal government's revenues and spending for the coming year is known as:

Back

Federal budget

Front

The use of government spending and revenue collection to influence the economy is defined as:

Back

Fiscal policy

Front

The loss of funds for private investment due to government borrowing is known as:

Back

crowding-out effect

Front

Fiscal policies, like higher spending and tax cuts, that encourage economic growth are referred to as:

Back

expansionary policies

Front

appropriations bill

Back

A bill that sets money aside for specific spending.