Economic Policy
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| 151477690 | budget | A document that announces how much the government will collect in taxes and spend in revenues and how those expenditures will be allocated. | |
| 151477691 | budget resolution | A recommendation for budget ceilings to guide the legislative committees in their spending decisions. | |
| 151477692 | budget surplus | A situation when the government takes in more money than it spends. | |
| 151477693 | Congressional Budget Act | Legislation that authorizes budget ceilings. | |
| 151477694 | Council of Economic Advisers | A group that forecasts economic trends. | |
| 151477695 | deficit budget | A budget that has expenditures exceeding tax revenue. | |
| 151477696 | economic planning | An economic philosophy that assumes that the government should plan some part of the country's economic activity. | |
| 151477697 | entitlements | Mandatory government spending like Social Security, Medicare, Medicaid, Food Stamps. | |
| 151477698 | Federal Reserve System | The mechanism that regulates the supply and price of money. | |
| 151477699 | fiscal policy | The use of taxes and expenditures to affect the economy. | |
| 151477700 | fiscal year | The period from Oct. 1 to Sept. 30 for which government appropriations are made and federal books are kept. | |
| 151477701 | industrial policy | A economic policy that would have the government planning or subsidizing investment in industries that need to recover or new and better industries that could replace them. | |
| 151477702 | Keynesianism | The theory that the health of an economy depends on what fraction of their incomes people save or spend. The belief that you can smooth out the business cycle through fiscal and monetary policy. | |
| 151477703 | monetary policy | The use of the amount of money in bank deposits and the price of money to affect the economy. | |
| 151477704 | monetarism | The theory that inflation occurs when there is too much money chasing too few goods. | |
| 151477705 | price and wage controls | Government regulation of the maximum prices that can be charged and wages that can be paid. | |
| 151477706 | Reaganomics | A combination of monetarism, tax cuts, and domestic budget cutting. | |
| 151477707 | sequester | Automatic accross the board cuts in certain federal programs when Congress and the president cannot agree on a spending plan. | |
| 151477708 | sociotropic voting | Behaving in a manner that regards the condition of the national economy more so than one's own personal finances. | |
| 151477709 | supply-side theory | An economic philosophy that holds that sharply cutting taxes would increase the incentive to invest, leading to more tax revenues. | |
| 151477710 | Tax Reform Act of 1970 | Represented a triumph for entrepreneurial politics. | |
| 151477711 | Treasury Department | An organization that provides estimates of tax revenues. | |
| 151477712 | mixed economies | Capitalist free market systems in which both government and private industry play a role. | |
| 151477713 | laissez-faire | Government should keep its hands off business.... | |
| 151477714 | reserve requirement | Amount of money banks are allowed to keep on hand. | |
| 151477715 | discount rate | Interest banks pay to the federal reserve banks for borrowing money. ... | |
| 151477716 | open market operations | Federal reserve buying and selling government bonds.... | |
| 151477717 | OMB | Office of management and budget. Responsible for initiating the budget process. Writes the president's budget. | |
| 151477718 | Ways and Means Committee | Deals with the taxing aspect of the budget.... | |
| 151477719 | Authorization committee | Decides which programs Congress wants to fund.... | |
| 151477720 | Appropriations committee | Both houses, starts in the house and they decide how much money to spend for those programs that have been authorized.... | |
| 151477721 | Mandatory spending | Required by law to spend the money on entitlements such as Medicare, Medicaid, Social Security veterans pensions etc...... | |
| 151477722 | Discretionary spending | Not required by law and include defense, education, highways, research grants, and all government operations. THese are the primary cuts to balance the budget.... | |
| 151477723 | balance of trade | Ratio of imported products to exported products.... | |
| 151477724 | Trade deficits | Occur when imported products exceed exports.... | |
| 151477725 | GATT | General Agreement on Trade and Tariffs or WTO, The 125 members account for 97% of the world's trade. Works to lower tariffs, quotas, and reduce unfair labor practices. | |
| 151477726 | NAFTA | North American Free Trade Agreement. Effort to promote free trade between Canada, Mexico, and the U.S. Removes import tariffs from one another's products. Has helped and hurt both those who are for it and those who are against it. |
