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study material for Economics CH 10 Vocab - Ponder

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Term
Definition
distribution of income   how income is allocated among individuals, families, and other groups in the economy  
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appropriations bill   act of Congress that authorizes federal agencies to spend money  
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federal budget deficit   situation in which federal spending exceeds revenue  
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public sector   part of the economy made up of federal, state, and local governments  
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intergovernmental expenditures   funds transferred from one level of government to another for spending  
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discretionary spending   federal programs that must receive annual authorization by Congress  
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line-item veto   presidential power to cancel specific budget items without rejecting the entire budget  
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crowding-out effect   higher interest rates caused by heavy government borrowing  
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spending cap   legal limits on annual discretionary spending  
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federal debt   total amount the government borrowed from investors to finance deficit spending  
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private sector   that part of the economy made up of individuals and privately owned businesses  
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fiscal year   12-month financial-planning period that may or may not correspond with the calendar year  
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per capita   per person  
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entitlement   social programs that provide services or income to all individuals who meet eligibility requirements  
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balanced budget amendment   budget in which spending equals revenues  
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