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| An economic philosophy that assumes inflation occurs when there is too much money chasing too few goods. Monetarism suggests that the proper thing for government to do is to have a steady, predictable increase in the money supply at a rate about equal to the growth in the economy’s productivity |
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| Public policy that advocates that the federal budget spend as much money as it receives. Attempt made to pass a constitutional amendment mandating this policy failed |
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| A document that announces how much the government will collect in taxes and spend in revenues and how those expenditures will be allocated among various programs. |
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| A situation in which the government spends more money than it takes in from taxes and fees |
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| A proposal submitted by the House and Senate budget committees to their respective chambers recommending a total budget ceiling and a ceiling for each of several spending areas ( |
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| Congressional Budget Office |
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| Set up by the Congress, this office evaluates the cost of legislative proposals |
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| A situation in which the government takes in more money than it spends |
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| A primary measure of inflation determined by the increase in the cost of products as compared to a base year |
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| Emergency spending legislation that prevents the shutdown of any department simply because its budget has not been enacted |
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| The government’s meeting budgetary expenses by borrowing more money than it can payback |
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| Money paid directly to the government in the form of income taxes |
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| Interest levels established by the Federal Reserve that affect the ability of the consumer to borrow money. Raising and lowering rates is used as a toll to combat inflation |
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| Results in the government giving benefits directly to people, groups, farmers, and businesses. Typical policies include subsidies, research and development funds for corporations, and direct government aid for highway construction and education |
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| An economic philosophy that assumes that the government should plan, in varying ways some part of the country’s economic activity. For instance, in times of high inflation, it suggests that the government regulate the maximum prices that can be paid, at least in the larger industries. |
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| Federal body that regulates the money supply by controlling open market operations, buying and selling of government securities, and establishing reserve requirements, the legal limitations on money reserves that banks must keep against the amount of money they have deposited in the Federal Reserve Banks and through discount rates, and the rate at which banks can borrow money from the Federal Reserve Systems |
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| An attempt to use taxes and expenditures to affect the economy |
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| The period from October 1 to September 30 for which government appropriations are made and federal books are kept. A fiscal year is named after the year in which it ends. |
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| Currently the key economic measure that analyzes and upward or downward economic trend of the monetary value of all the goods and services produced within the nation on a quarterly basis |
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| The total of all goods and services produced in a year |
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| Money paid to the government as a result of purchased goods |
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| An economic philosophy that assumes that the market will not automatically operate at a full-employment, low-inflation level. It suggests that the government should intervene to create the right level of demand by pumping more money into the economy (when demand is low) and taking it out (when demand is too great) |
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| French term literally meaning “hands off.” Used to describe an economic philosophy of non-government intervention in economic matters such as regulation of business or establishing tariffs |
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| An attempt to alter the amount of money in circulation and the price of money (the interest rate) to affect the economy |
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| Act that prohibited employers from punishing workers who joined unions and gave labor the right to form unions |
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| Office of Management and Budget |
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| Its director, appointed with the consent of the Senate, is responsible for the preparation of the massive federal budget, which must be submitted to the Congress in January eachyear. Besides formulating the budget, the OMB oversees congressional appropriations |
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| Vast sums of money that some assumed would be freed up for domestic spending by cuts in post-Cold War defense spending |
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| The government’s price guarantees for certain farm goods. The government subsidizes farmers to not grow certain crops and also buys food directly and stores it, rather than let the oversupply in market bring the prices down |
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| The federal economic policies of the Reagan administration elected in 1981. These policies combined a monetarist fiscal policy, supply side tax cuts, and domestic budget cutting. Their goal was to reduce the size of the federal government and stimulate economic growth |
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| Policy that results in the government taking money from one segment of the society through taxes and giving it back to groups in need. It includes such policies as welfare, Aid to Families with Dependent Children , tax credits for business expenses or business investments, and highway construction made possible through a gasoline tax |
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| Policy that results in government control over individuals and businesses. Examples of regulatory policy include protection of the environment and consumer protection. |
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| Automatic, across-the-board cuts in certain federal programs that are triggered by law when Congress and the president cannot agree on a spending plan. |
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| An economic philosophy that holds that sharply cutting taxes would increase the incentive that people have to work, save and invest. Greater investments would lead to more jobs, more productive economy, and more tax revenues for the government. |
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| The result of a country importing more than it exports |
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| Also called the National Labor Relations Act of 1935, it gave workers involved in interstate commerce the right to organize labor unions and engage in collective bargaining and prevented employers from discriminating against labor leaders and taking action against union leaders |
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