(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
|
|
|
| annually balanced budget | the principle that government revenues and expenditures should balance each year (See page(s) 294) |
| |
| |
| |
| automatic stabilizers | built-in measures, such as taxation and transfer payment programs, that lessen the effects of the business cycle (See page(s) 283) |
| |
| |
| |
| balanced budget | the situation where a government's expenditures and revenues are equal (See page(s) 293) |
| |
| |
| |
| balanced-budget multiplier | the value by which an identical change in G and T is multiplied to find the resulting change in equilibrium GDP (See page(s) 300) |
| |
| |
| |
| budget deficit | the situation where a government's expenditures exceed its revenues (See page(s) 293) |
| |
| |
| |
| budget surplus | the situation where a government's revenues exceed its expenditures (See page(s) 293) |
| |
| |
| |
| contractionary fiscal policy | government policy that involves decreasing government purchases, increasing taxes, or both to restrain spending and output (See page(s) 282) |
| |
| |
| |
| contractionary policies | government policies designed to stabilize prices and reduce output (See page(s) 281) |
| |
| |
| |
| cyclically balanced budget | the principle that government revenues and expenditures should balance over the course of one business cycle (See page(s) 294) |
| |
| |
| |
| decision lag | the amount of time needed to formulate and implement an appropriate policy (See page(s) 291) |
| |
| |
| |
| discretionary policy | intentional government intervention in the economy, such as budgeted changes in spending or taxation (See page(s) 283) |
| |
| |
| |
| expansionary fiscal policy | government policy that involves increasing government purchases, decreasing taxes, or both to stimulate spending and output (See page(s) 282) |
| |
| |
| |
| expansionary policies | government policies designed to reduce unemployment and stimulate output (See page(s) 281) |
| |
| |
| |
| fiscal policy | government stabilization policy that uses taxes and government purchases as its tools; budgetary policy (See page(s) 281) |
| |
| |
| |
| fiscal year | the 12-month period to which a budget applies (See page(s) 281) |
| |
| |
| |
| functional finance | the principle that government budgets should be geared to the yearly needs of the economy (See page(s) 294) |
| |
| |
| |
| impact lag | the amount of time between a policy's implementation and its having an effect on the economy (See page(s) 291) |
| |
| |
| |
| marginal propensity to consume | the effect on domestic consumption of a change in income (See page(s) 286) |
| |
| |
| |
| marginal propensity to withdraw | the effect on withdrawals-saving, imports, and taxes-of a change in income (See page(s) 286) |
| |
| |
| |
| monetary policy | government stabilization policy that uses interest rates and the money supply as its tools (See page(s) 281) |
| |
| |
| |
| multiplier effect | the magnified impact of a spending change on aggregate demand (See page(s) 285) |
| |
| |
| |
| net tax revenues | taxes collected, minus transfers and subsidies (See page(s) 283) |
| |
| |
| |
| public debt | the total amount owed by the federal government as a result of its past borrowing (See page(s) 291) |
| |
| |
| |
| public debt charges | the amounts paid out each year by the federal government to cover the interest charges on its public debt (See page(s) 291) |
| |
| |
| |
| recognition lag | the amount of time it takes policy-makers to realize that a policy is needed (See page(s) 291) |
| |
| |
| |
| spending multiplier | the value by which an initial spending change is multiplied to give the total change in real output (See page(s) 288) |
| |
| |
| |
| stabilization policy | government policy designed to lessen the effects of the business cycle (See page(s) 281) |