Term
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Definition
| Plan for fed. go. outlays and revenues for a specified period, usually a year |
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Term
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Definition
| Congressional agreement about total outlays, spending by major category, and expected revenues; it guides spending and revenue decisions by the many congressional committees and subcommittees |
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Term
| What does deficit do in short/long run |
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Definition
Short: stimulates aggregate demand
Long: Impedes economic growth because of reduced saving |
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Term
| What does surplus do in short/long run? |
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Definition
Short: Reduces aggregate demand
Long: Economic growth because of more domestic saving |
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Term
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Definition
| Budget agreements that allow agencies, in absence of an approved budget, to spend at the rate of the previous year's budget |
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Term
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Definition
| Guranteed benefits for those who qualify for gov. transfer programs such as Social Security and Medicare |
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Term
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Definition
| Budget philosophy prior to Great Depression; aimed at matching annual revenues with outlays, except during times of war |
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Term
| Cyclically balanced budget |
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Definition
| Budget philosophy calling for budget deficits during recessions to be financed by budget surpluses during expansions |
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Term
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Definition
| Budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle |
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Term
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Definition
| The displacement of interest-sensitive private investment that occurs when higher gov. deficits drive up market interest ratess |
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Term
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Definition
| The potential for gov. spending to stimulate private investment in an otherwise dead economy |
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