7.2 Fiscal Policy

Categories that the government can choose how much to spend.

• Mandatory spending

• Discretionary spending

• Entitlement programs

• Social Security

Reducing government spending and increasing taxes to reduce or slow economic growth.

• Expansionary fiscal policy

• Contractionary fiscal policy

• Monetary policy

• Supply-side economics

Programs people are entitled to if they meet certain eligibility requirements.

• Entitlement programs

• Welfare programs

• Subsidy programs

• Assistance programs

Provides health insurance for Americans aged 65 and older.

• Medicare

• Medicaid

• Social Security

• Affordable Care Act

Non-discretionary tools that go into effect depending on GDP and personal income.

• Automatic stabilizer

• Fiscal policy

• Monetary policy

• Discretionary spending

Provides health insurance for children, pregnant women, seniors, parents, and those with disabilities who meet income eligibility requirements.

• Medicaid

• Medicare

• CHIP

• Private Insurance

Increasing government spending and reducing taxes to increase or encourage economic growth.

• Contractionary fiscal policy

• Expansionary fiscal policy

• Monetary policy

• Supply-side economics

Provides monthly income benefits to beneficiaries beginning at ages 62 to 70 and continuing through the rest of their lives.

• Social Security

• Medicare

• Unemployment Insurance

• Pension Plans