Three Goals of Government and Fiscal Policy

These flashcards cover the essential vocabulary and concepts related to government fiscal policies and budgeting processes.

Fiscal Policy

Actions taken by the government to influence the economy, particularly through taxes and spending.

Monetary Policy

Actions taken by the Federal Reserve System to influence the economy.

Mandatory Spending

Expenses that are required by law, such as entitlements.

Discretionary Spending

Optional spending that is subject to the annual appropriations process.

Federal Budget

A plan for the government’s revenue and expenses; involves the President's budget request and Congressional oversight.

Entitlements

Government programs that provide benefits to eligible individuals, often categorized under mandatory spending.

Budget Resolution

An agreement reached by the House and Senate subcommittees that sets overall spending levels.

Appropriation Bills

Laws passed to allocate funds for government programs and services.

Government's Fiscal Year (FY)

The period used for accounting purposes, which varies by government, in this case extending from October 1 to September 30.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.