Term
| Council of Economic Advisers (CEA) |
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Definition
| a group of three economists appointed by the president to provide expertise and assistance on economic matters |
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Term
| expansionary fiscal policy |
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Definition
| used when a recession occurs involves an increase in government spending and a decrease in taxes |
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Term
| contractionary fiscal policy |
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Definition
| help when demand-pull inflation occurs involves decrease in government spending and increase in taxes |
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Term
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Definition
| government spending in excess of tax revenues |
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Term
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Definition
| tax revenues in excess of government spending |
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Term
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Definition
| anything that increases the government's budget deficit during a recession and increases its budget surplus during an expansion without requiring explicit action by policy makers |
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Term
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Definition
| tax revenue/ GDP, The more you make the more you are taxed |
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Term
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Definition
| the tax rate remains constant as GDP rises |
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Term
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Definition
| tax rate falls as GDP rises |
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Term
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Definition
| adjusts Federal budget deficit or surplus and accounts for changes in tax revenues that happen automatically whenever GDP changes |
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Term
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Definition
| by-product of economy's slide into recession, not the result of discretionary fiscal actions by the government |
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Term
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Definition
| enables foreigners to buy some of our output 25% of U.S. debt held by foreign countries |
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Term
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Definition
| total accumulation of the deficits minus the surpluses that the Federal government has incurred through time |
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