1. Public Policy?
    What gov does, usually in form of new laws and regulations or in the interpretation and implementation of exsisting laws and regulations.
  2. Distibutive policies?
    Gov policies targeted at narrowly defined groups or indivuals
  3. Redistributive policies?
    gov policies that transfer resources from one group to another
  4. Regulatory policies?
    Gov policies that require a group or class of groups to change its behavior to serve some public good
  5. Public goods?
    Gov policies that provide benefits for everyone
  6. Inflation?
    a condition of rising prices and reduced purchasing power
  7. Recession
    Two quarters or more of declining gross domestic product
  8. Depression?
    a severe and persistent drop in economic activity
  9. Gross domestic product?
    Monetary value of all goods and services produced in a nation each year
  10. balance of payments?
    the annual difference between payments and receipts between a country and its trading partners
  11. externalities?
    the positive/negative effects of economic activity on third parties
  12. Federal reserve board
    the body responsible for deciding the monetary policies of the U.S.
  13. Macroeconomic policy
    policy that has to do with the performance of the economy as a whole
  14. Fiscal policy?
    gov effort to affect overall output and incomes in the economy through spending and taxing policies
  15. Monetary policy/
    gov efforts to affect the supply of moneyand the level of interest rates in the economy
  16. Keynesians
    advocates of gov programs to stimulate economic activity through tax cuts and gov spending
  17. Monetarists
    advocates of a minimal gov role in the economy, limited to managing the growth of the money supply
  18. Office of managment and budget
    part of exceutive office of the president charged with helping pres prepare the annual budget reguest to congress; also performs oversight of the rule-making by executive branch agencies
  19. Appropriations committees
    the committees in the house and senate that set specific spending levels in the budget for federal programs and agencies
  20. Deficit hawks
    people coomitted to reducing budget deficits
  21. Discretionary spending
    that part of federal budget that is not tied to a formula that automatically provides money to some program or purpose
  22. Payroll tax
    tax levied on salaries and wages for social security and medicare
  23. Progressive taxation
    a tax system in which higher-income indivuals are taxed at a higher rate than those below them
  24. Regressive taxation
    a tax system in which lower income indivuals are taxed ata higher rate than those above them
  25. Congressional Budget Office
    an agency of the U.S. congress that provides technical support and research services on budget issues for its members and committees
  26. Budget deficit
    the amount by which annual gov expenditures exceed revenues
  27. National debt
    the total outstanding debt of the federal gov; the sum total of all annual budget deficits and surpluses
  28. regulation
    the issuing of rules by gov agencies with aim of reducing the scale of negative externalities produced by pvt firms
  29. Deregulation
    the process of diminishing regulatory requirements for business
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