Term
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Definition
| deliberate changes in government spending or taxation to promote full employment, price level stability, and economic growth |
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Term
| council of economic advisers (CEA) |
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Definition
| a group of three economists appointed by the U.S. president to provide advice and assistance on economic matters |
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Term
| expansionary fiscal policy |
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Definition
| an increase in government spending, a decrease in taxes, or some combination of the two for the purpose of increasing aggregate demand and real output |
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Term
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Definition
| the amount by which expenditures of the federal government exceed its revenues in any year |
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Term
| contractionary fiscal policy |
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Definition
| a decrease in government spending, an increase in taxes, or some combination of the two for the purpose of decreasing aggregate demand and halting inflation |
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Term
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Definition
| the amount by which revenues of the federal government exceed its expenditures in any year |
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Term
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Definition
| anything that increases the government's budget deficit (or reduces its budget surplus) during a recession and increases its budget surplus (or reduces its budget deficit) during expansion without requiring explicit action by policymakers |
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Term
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Definition
| a measure of what the federal budget deficit or surplus would be with existing tax rate and government spending programs if the economy had achieved its full-employment GDP in the year |
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Term
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Definition
| a federal budget deficit that is caused by a recession and the consequent decline in tax revenues |
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Term
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Definition
| the alleged tendency of presidential administrations and congress to create macroeconomic instability by reducing taxes and increasing government spending before elections and to raise taxes and reduce expenditures after elections |
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Term
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Definition
| a decrease in private investment caused by higher interest rates that result from the federal governments increased borrowing to finance deficits (or debt) |
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Term
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Definition
| the total amount of money owed by the federal government to the owners of government securities; equal to the sum of past government budget deficits less government budget surpluses |
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Term
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Definition
| treasury bills, treasury notes, treasury bonds, and U.S. savings bonds issued by the federal government to finance expenditures that exceed tax revenues |
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Term
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Definition
| the part of the public debt owned to foreign citizens, firms, and insitutions |
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Term
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Definition
| a curve that shows the amount of investment forthcoming in an economy at each real interest rate in a series of such rates |
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Term
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Definition
| government expenditures on public capital (such as highways, bridges, mass-transit systems, and electric power facilities) and on human capital (such as education, training, and health) |
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Term
| social security trust fund |
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Definition
| a federal fund that saves excessive social security tax revenues recieved in one year to meet social security benefit obligations that exceed social security tax revenues in some subsequent year |
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