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STC Eco Ch14

TermDefinition
Fiscal policy: Deliberate changes in the government spending or taxation to promote full employment, price level stability and economic growth.
Expansionary fiscal policy: An increase in government spending , a decrease in taxes, or some combination of the two for the purpose of increasing aggregate demand and real output.
Budget deficit: The amount by which expenditures if the Federal government exceeds its revenue in any year.
Contractionary fiscal policy: A decrease in government spending, and increase in taxes, or a combination of the two for the purpose of decreasing aggregate demand and halting inflation.
Budget surplus: The amount by which the revenues of the Federal government exceeds its expenditures in any year.
The functions of money: Medium of exchange Unit of account and Store of value.
Created by: vjambriz
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