Term
|
Definition
| government programs intended to protect families against economic hardship |
|
|
Term
| expansionary fiscal policy |
|
Definition
| increases aggregate demand |
|
|
Term
| contractionary fiscal policy |
|
Definition
|
|
Term
| in the United States, most government transfers are accounted for by _____ programs - principally Social Security, Medicare, & Medicaid - programs designed to alleviate economic hardship |
|
Definition
|
|
Term
| _____ is implemented by an increase in government spending, a cut in taxes, or an increase in government transfers |
|
Definition
| expansionary fiscal policy |
|
|
Term
| _____ is implemented by a reduction in government spending, an increase in taxes, or a reduction in government transfers |
|
Definition
| contractionary fiscal policy |
|
|
Term
|
Definition
| taxes that don't depend on the taxpayer's income |
|
|
Term
|
Definition
| government spending & taxation rules that cause fiscal policy to be automatically expansionary when the economy contracts & automatically contractionary when the economy expands |
|
|
Term
| discretionary fiscal policy |
|
Definition
| fiscal policy that is the result of deliberate actions by policy makers rather than rules |
|
|
Term
| taxes reduce the size of the multiplier unless they are _____ |
|
Definition
|
|
Term
| taxes & some government transfers act as _____ as tax revenue responds positively to changes in real GDP & some government transfers respond negatively to changes in real GDP |
|
Definition
|
|
Term
| in contrast to automatic stabilizers, the use of _____ is more controversial |
|
Definition
| discretionary fiscal policy |
|
|
Term
| cyclically adjusted budget balance |
|
Definition
| an estimate of what the budget balance would be if real GDP were exactly equal to potential output |
|
|
Term
| the _____ is an estimate of what the budget balance would be if the economy were at potential output |
|
Definition
| cyclically adjusted budget balance |
|
|
Term
|
Definition
| runs from October 1 to September 30 & is labeled according to the calendar year in which it ends |
|
|
Term
|
Definition
| government debt held by individuals & institutions outside the government |
|
|
Term
|
Definition
| the government's debt as a percentage of GDP |
|
|
Term
|
Definition
| spending promises made by governments that are effectively a debt despite the fact that they are not included in the usual debt statistics |
|
|
Term
| persistent budget deficits lead to increases in _____ |
|
Definition
|
|
Term
| the fact that rising public debt can lead to government default or reduction in long-run growth suggests that budget deficits in bad _____ should be offset with budget surpluses in good fiscal years |
|
Definition
|
|
Term
| a widely used indicator of fiscal health is the _____ |
|
Definition
|
|
Term
| in addition to their official public debt, modern governments have _____ |
|
Definition
|
|
