GOVT Ch. 17

In 2016 the US national debt was roughly equivalent to ____ per person

$59k

The total income that consumers, businesses, and government wish to spend for goods and services is referred to as

aggregate demand

The House Armed Services Committee and Senate Banking, Housing, and Urban Affairs Committee are ____ committees that review portions of the budget that pertain to their area of responsibility

authorization

Market economies are loosely called

capitalist economies

Monetarists argue that government can control the economy's performance simply by

controlling the money supply

The role of appropriations committees is to

decide which programs will be funded

A government spending in excess of tax revenues to combat an economic slump is known as

deficit spending

Non-entitlement spending that is authorized by annual appropriations is referred to as ____ spending

discretionary

The Department of Education successfully lobbies to have added to the budget a new federally-funded program that would provide for technology in classrooms. Spending on this program would be best described as ____ spending

discretionary

Social Security and veterans' pensions, which provide benefits to which individuals have a legal right and which cannot be reduced without changing the law, are also referred to as

entitlements

For the first time in Federal Reserve history, members of Congress proposed auditing Fed decisions following the Fed's actions during the

financial crisis of 2008

If government cuts taxes to encourage people to spend more money in order to stimulate economic growth, it is engaging in

fiscal policy

The total federal tax burden on US citizens ___ than the 1950s

has actually decreased since

Developing budgets by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation) and any new programs is called

incremental budgeting

Which of these terms is an economic condition characterized by price increases linked to a decrease in the value of the currency?

inflation

Traditionally, the Federal Reserve has tended to be more concerned about ____ than

inflation; unemployment

Within the federal budget, expenditures that are required based on previous commitments are called ____ spending

mandatory

When asked in a recent national poll whether federal spending should be "increased, decreased or kept about the same" for eighteen different purposes, respondents said that every category of spending should be maintained or increased EXCEPT

military defense, unemployment aid, and aid to the world's needy

When discussing the federal budget, the phrase "uncontrollable spending" refers to the fact that

much of the budget is already committed by past contracts and agreements

From WW2 until the collapse of the Soviet Union, the national budget allowed for the most spending in the area of

national defense

The text suggests that no one in Congress is responsible for the budget as a whole because

one group in each house plans for revenues, and many other groups plan for spending

A tax allocated based on a person's ability to pay, rathe than, for example, requiring everyone to pay an equal percentage of their income, is known as a ___ tax

progressive

A tax where the rich pay proportionately higher taxes as a share of their income than the poor is also known as a

progressive tax

One important governmental justification for progressive taxation is

promoting equality

Because everyone pays the same rate of sales tax on purchases, and less wealthy people spend most of their income buying things, as opposed to saving and investing, the sales tax has a ____ impact

regressive

The simultaneous occurrence of slow growth, unemployment, and inflation is referred to as

stagflation

The idea of tax cuts for the rich that will then "trickle down" to working people in the form of additional jobs and income, is consistent with

supply-side economics

Which committees are responsible for raising the revenue with which to run the government

tax committees

Supporters of supply-side economics are likely to favor

tax cuts to stimulate investment

The essence of supply-side economics is that

taxes should be cut to stimulate investment, and govern regulation of business should be decreased

Monetary policies are largely determined by

the Federal Reserve Board

Adam Smith's "invisible hand" refers to

the economic force that converts individual pursuit of personal profit into societal good

The Budget and Accounting Act of 1921 placed the responsibility for preparing the federal budget in the hands of

the president

According to the text, _____ have historically been most favored by America's tax policies

the richest citizens

The _____ Amendment empowered the national government to collect taxes on income

16th

In February 2016, the total national debt was about ___ trillion dollars

19

The interest on the accumulated national debt accounts for over ___ of all national government spending

7%

A good method of evaluation a country's amount of national debt, according to the authors, is

Dividing the debt as a percentage of GDP

The system of banks that act as the bank of the US is called the

Federal Reserve

The value of the goods and services actually produced is called the nation's

GDP

One famous monetarist theorist is Nobel Laureate

Milton Friedman

The fiscal year refers to the interval the US government uses for accounting purposes and runs from

October 1st- September 30th

The ____ supervises the development of the president's budget

Office of Management and Budget (OMB)

The business cycle is

Periods of expansion and inflation alternating with periods of contraction and unemployment

According the efficient market hypothesis, financial markets ____ all relevant information about securities into their prices

Quickly absorb

President ____ embraced supply-side economics

Reagan

For the fiscal year 2017, the federal government's single largest budgeted spending item is for

Social Security

An example of a regressive tax in America is the

Social Security tax

Today China says that it has a _____ market economy because it depends on the private sector for economic growth but also direct and supports state-owned enterprises

Socialist

A country in which the government is described as laissez-faire is one in which

There's no government control