Term
|
Definition
| annual statement of the outlays and receipts of the government of the united states together with the laws and regulations that approve and support them. |
|
|
Term
| Purposes of the federal budget |
|
Definition
| To finance federal government programs and activities, and to achieve macroeconomic objectives. |
|
|
Term
|
Definition
| Congress declared that it "it is the continuing policy and responsibility of the federal government to use all practicable means... to coordinate and utilize all its plans, functions, and resources... to promote maximum employment, production, and purchasing power. |
|
|
Term
| Council of economic advisers |
|
Definition
| monitors the economy and keeps the president and the public well informed about the current state of the economy and the best available forecasts of where it is heading. |
|
|
Term
|
Definition
| the total amount that the government has borrowed. Sum of past budget deficits minis the sum of past budget surpluses. |
|
|
Term
|
Definition
| the gap created between the before-tax and after-tax wage rates is called the tax wedge. |
|
|
Term
|
Definition
| the relationship between the tax rate and the amount of tax revenue collected. |
|
|
Term
|
Definition
| an accounting system that measures the lifetime tax burden and benefits of each generation. |
|
|
Term
|
Definition
| an amount of money that, if invested today, will grow to equal a given future amount when the interest that it earns is taken into account. |
|
|
Term
|
Definition
| present value of the government's commitments to pay benefits minus the present value of its tax revenues. |
|
|
Term
|
Definition
| the division of the fiscal imbalance between the current and future generations, assuming that the current generation will enjoy the existing levels of taxes and benefits. |
|
|
Term
|
Definition
| the use of fiscal policy to increase production and employment |
|
|
Term
|
Definition
| a fiscal policy action that is triggered by the state of the economy with not action by government. increase in total unemployment benefits triggered by the massive rise in the unemployment rate through 2009 is an example. |
|
|
Term
| discretionary fiscal policy |
|
Definition
| a fiscal policy action initiated by an act of Congress. Economic stimulus act passed by congress is an example. |
|
|
Term
| structural surplus or deficit |
|
Definition
| budget balance that would occur if the economy were at full employment |
|
|
Term
| cyclical surplus or deficit |
|
Definition
| actual surplus or deficit minus the structural surplus or deficit |
|
|
Term
| government expenditure multiplier |
|
Definition
| quantitative effect of a change in government expenditure on real GDP |
|
|
Term
|
Definition
| quantitative effect of a change in taxes on real GDP. |
|
|
