Unit 5 Vocabulary Flashcards

Flashcards for Unit 5 vocabulary based on lecture notes.

Budget Deficit

Annual shortfall of federal revenue compared to expenses

Discretionary Spending

Spending on programs not already required by law

Entitlement Programs

A program for which funding is required that provides guaranteed benefits to those who qualify, regardless of income

Executive Agreement

Agreement with a foreign nation that does not require congressional approval

Executive Order

A presidential statement that has the force of law & does not require congressional approval

Fiscal Policy

The government's use of taxing and spending to influence economic growth

Free Enterprise

The idea that businesses should operate in competition, relatively free from government control

Keynesian Theory

Theory that the government should spend money during economic recessions to stimulate the economy

Lame Duck Period

Time period after a November election when the country is waiting for the new president to be Inaugurated & the current president prepares to leave office

Mandatory Spending

Spending that is required under the law, such as Medicare and interest on the national debt

Monetary Policy

Government's (the Federal Reserve) use of the money supply to influence economic growth

Pocket Veto

When the president doesn't sign a bill for 10 days after Congress has adjourned, the bill dies

Signing Statement

Signing a bill with a written statement that the executive will not carry out a portion of the bill

Supply-Side Economics

The theory that the government should cut taxes to stimulate economic growth