Term
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Definition
| The gov. spending and taxing policies. |
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Term
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Definition
| The behavior of the federal reserve concerning the nation's money supply. |
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Term
| Discretionary Fiscal Policy |
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Definition
| Changes in taes or spending that are the result of deliberate changes in government policy. |
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Term
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Definition
| Taxes paid by firms and households to the government minus transfer payments made to households by the government |
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Term
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Definition
| Total income minus net taxes. (Y-T) |
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Term
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Definition
| The different between what a government spends and what it collects in taxes in a given period, (G-T) |
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Term
| Government Spending Multiplier |
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Definition
| The ratio of the change in the equilibrium level of output to change in government spending |
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Term
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Definition
| The ratio of change in the equilibrium level of output to a change in taxes. |
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Term
| Balanced Budget Multiplier |
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Definition
| The ratio of change in the equilibrium level of output to a change in government spending where the change in government spending is balanced by a change in in taxes as not to create any deficit. |
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Term
| Federal Surplus/ Federal Deficit |
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Definition
| Federal government receipts minus expenditures |
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Term
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Definition
| The total amount owed by the federal government |
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Term
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Definition
| Revenue and expenditure items in the federal budget that automatically change with the state of the economy in such a way as to stabilize GDP |
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Term
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Definition
| The negative effect om the economy that occurs when average tax rates increase because average tax payers move into higher income brackets during an expansion. |
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Term
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Definition
| Deficit that occurs because of downturn in business cycle |
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Term
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Definition
| The budget of the federal government |
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Term
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Definition
| What the federal budget would be if the economy were producing at the full employment level of output |
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