Fiscal Policy

Front

The term ___________ refers to legislation or policies at all levels of governments (federal, state and local) that relate to expenditures and taxation.

Back

fiscal policy

Front

By changing the amount of taxes people pay or the amount of spending by the government, fiscal policy influences _____________.

Back

the economy

Front

Throughout most of the 20th century and into the 21st century, the United States federal government has operated at a _________, where government expenditures have exceeded government revenues.

Back

budget deficit

Front

Each year that the federal government runs a deficit, it adds to the __________.

Back

national debt

Front

The fiscal policy tools available to the government are changes in government __________ and changes in ___________.

Back

government spending, taxes

Front

During a time of inflation (or increasing overall price level), the government may decide to pursue _________________ fiscal policy to curtail economic activity and curb inflation.

Back

contractionary

Front

The fiscal policy tools used to combat inflation include lowering government _____________ or increasing ____________.

Back

spending, taxes

Front

______________ fiscal policy is rarely implemented by policymakers because it is politically very difficult.

Back

Contractionary

Front

When the government wishes to promote full employment and economic growth at a time when the economy is in a period of recession, it can use fiscal policy tools designed to increase ____________ and investment ___________ in the economy.

Back

consumption and investment

Front

_________________fiscal policy is often attractive to legislators because it is popular among voters.

Back

Expansionary