Fiscal Policy Review

Question 1

What economic data did Keynes say the Federal Government should track?

Accepted Answer

Total Spending

Question 2

Created automatic across the board cuts in Fed. expenditures if deficit exceeded certain amount

Accepted Answer

Gramm-Rudman-Hollings Act

Question 3

Decline in economic activity

Accepted Answer

Recession

Question 4

A fiscal year goes from when to when?

Accepted Answer

October 1 to September 30

Question 5

Supply-Side Economics believes high taxes have what kind of impact on Economic Output?

Accepted Answer

Negative

Question 6

How does the Government borrow money?

Accepted Answer

Bonds

Question 7

General increase in prices and fall in the purchasing value of money.

Accepted Answer

Inflation

Question 8

Fiscal policy used to reduce economic growth, through decreased spending and higher taxes

Accepted Answer

Contractionary Policy

Question 9

British Economist who created Keynesian Economics.

Accepted Answer

John Maynard Keynes

Question 10

Uses demand-side theory as the basis for encouraging government action to help the economy

Accepted Answer

Keynesian Economics

Question 11

What event challenged the ideas of classical economics?

Accepted Answer

Great Depression

Question 12

Maximum output an economy can sustain over a period of time without increased inflation.

Accepted Answer

Productive Capacity

Question 13

Use of government spending and revenue collection to influence the economy.

Accepted Answer

Fiscal Policy

Question 14

Keynes argued the only way to end the Great Depression was.....

Accepted Answer

Boost Demand

Question 15

Government bond that is issued with a term of 30 years.

Accepted Answer

Treasury Bond

Question 16

Created a pay as you go system

Accepted Answer

Budget Enforcement Act

Question 17

Fiscal policy used to encourage economic growth, through increased spending or tax cuts

Accepted Answer

Expansionary Policy

Question 18

Expansionary policy is used to prevent what?

Accepted Answer

Recession

Question 19

Bill that authorizes a specific amount of spending by the government.

Accepted Answer

Appropriations Bill

Question 20

School of thought based on the idea that free markets regulate themselves.

Accepted Answer

Classical Economics

Question 21

Government bond with a term of 2 to 10 years.

Accepted Answer

Treasury Note

Question 22

School of thought based on idea that demand for goods drives the economy.

Accepted Answer

Demand-Side Economics

Question 23

Loss of funds for private investment caused by government borrowing.

Accepted Answer

Crowding-Out Effect

Question 24

Idea that every dollar change in fiscal policy creates a change greater than one dollar.

Accepted Answer

Multiplier Effect

Question 25

Money borrowed for 1 fiscal year

Accepted Answer

Deficit

Question 26

Government bond with a maturity date of 26 weeks or less.

Accepted Answer

Treasury Bill

Question 27

Total sum owned

Accepted Answer

Debt

Question 28

Any 12 month period used for budgeting purposes.

Accepted Answer

Fiscal Year

Question 29

School of thought based on the idea that the supply of goods drives the economy.

Accepted Answer

Supply-Side Economics

Question 30

Written document estimating the Federal Governments revenue and authorizing its spending.

Accepted Answer

Federal Budget

Fiscal Policy Review

Questions 30

Fiscal Policy Review

Questions 30