Studied by 2 peopleDeficit
Result of when the government in one year spends more money than it takes in from taxes
National debt
Total deficit from the first presidency down to the present
Gross domestic product (GDP)
The total of all goods and services produced in the economy during a given year
Monetarist
Belief that inflation occurs when too much money is chasing too few goods
Keynesianism
Belief the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation
Economic planning
Belief that government plans, such as wage and price controls or the direction of investment, can improve the economic
Supply-side theory
The belief that lower taxes and fewer regulations will stimulate the economy
Monetary policy
Managing the economy by altering the supply of money and interest rates
Fiscal policy
Managing the economy by the use of tax and spending laws
Globalization
The growing integration of the economies and societies of the worldinc
Income inequality
The extent to which income is unevenly distributed throughout society
Budget
A document that states tax collections, spending levels, and the allocation of spending among purposes
Fiscal year
Each budget covers a fiscal year, which for the federal government, runs through October 1 through the following September.
Budget resolution
A congressional decision that states the maximum amount of money the government should spend
Mandatory
Money that the government is required to spend by law
Entitlements
A claim for government funds that cannot be changed without violating the rights of claimant
Discretionary spending
Spending that is not required to pay for contracts, interest on the national debt, or entitlement programs such as Social Security
Sequester
Automatic spending cuts
Note 
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