ECONOMICS C15 Funsheet

1. The standards we are covering are SSEMA1 and SSEMA3. 2. Basic terms of fiscal policy: a. expenditure spending b. per capita per person c. public sector federal, state, and local governments d. private sector - individuals and businesses 3. The federal budget is a written document detailing government revenues & expenditures for a certain fiscal year. 4. A balanced budget is a budget in which revenues are equal to spending. 5. A budget surplus is a situation in which the government takes in more than it spends. 6. A budget deficit is a situation in which the government spends more than it takes in. 7. An appropriations bill is a bill that sets money aside for specific spending. 8. Deficit spending is government spends more than it collects. 9. The national debt is the total amount of money the federal government owes. 10. An expansionary policy is a fiscal policy, like higher spending and tax cuts, that encourage economic growth. 11. A contractionary policy is a fiscal policy, like lower spending and higher taxes, that reduce economic growth.