Chapter 15 section 1 By Gary Tuggle Brandon drew and Layne

Slide 1 Fiscal Policy – Government use of taxing and spending to stabilize the economy. This means that the government keeps control of the economy by making them pay. This also is a good means of keeping the money in the in the country.

Slide 2 Federal budget- A plan for the federal governments revenues and spending for the coming year. This is sort of a preplan for the actual plan. This also helps with the organization of the economies money.

Slide 3 Fiscal Year – a twelve month period that can begin on any date. Which is basically a system in which the fiscal is involved. So it is decided by the government as well. This also helps with the saving or revenue of the money in the country as well.

Slide 4 Office of Management and budget (OMB) – This is the government office that manages the federal budget. This is a big part of the government because it can make or break the government because it manages the money it brings in from taxes/ etc.

Slide 5 Congressional Budget office (CBO) – Government agency that provides economic data to the congress. This is derived from the information they get. This a big part of the government as well because it is basically the governments source of information for the country.

Slide 6 Appropriations Bill – A bill that sets money aside for specific spending. This is also derived from the information the government has gotten. This is a good plan also because

Slide 7 Expansionary policies – fiscal policies, like higher spending and tax cuts, that encourage economic growth. These policies help control the economic debt as well.

Slide 8 Contractionary Policies – Fiscal policies, like lower spending and higher taxes, that reduce economic growth. This also hwill help the conservation of money which will help the government in time of need.

Slide 9 Fiscal policy can help or harm the economy which makes it a big part of the government and also a big part to control this important subject. Because of this the government has to keep good control of this.

Slide 10 Congress sends the appropriations bill to the president, who can sign them into law. If he vetoes any of these bills congress must either override or let it stand. Which is good in a way because they can go against the president when he makes a decision they don’t like.

Slide 11 Government officials who take part in the debate process debate how much should be spent on specific programs such as defense, education, and scientific research. They debate on this because it is what they will be spending their money on.

Slide 12 Governments use expansionary fiscal policies to raise the level of output in the economy. They also use expansionary policies to encourage growth when the economy is in a recession. This is also good because it can help the economy when it is not producing like it should.

Slide 13 The government also uses fiscal policies to prevent big changes in the level of GPD. Despite the statistics, however, it is difficult to know the current state of the economy. This is a good policy because it keeps the economy from getting to out of hand.

Slide 14 The word fiscal comes from the Latin word fisc. This means basket or bag. Spending more money than you earn is a bad idea. You might face an unexpected need that calls for more cash than you have on hand.

Slide 15 Fiscal policy decisions, such as how much to spend and how much to tax are among the most important decisions the federal government makes. These decisions are made each year during the creation of the nation’s federal budge t.

Slide 16 The federal budget is just a plan to pay for the federal government’s expenditures. The federal government prepares a new budget for each year. The federal budget takes about 18 months to prepare.

Slide 17 The federal budget must fund many offices and agencies in the federal government. Congress cannot decide all of their needs. The OMB holds several meetings to review the Federal agencies’ spending proposals.

Slide 18 The president’s budget is only a starting point, and the number of changes congress makes depends on the relationship between the president and congress. Most of the work done by the Congress, the House of Representives and the Senate, is done in small committees

Slide 19 Working at the same time in different houses of congress, committees in the House and Senate analyze the budget and hold hearings at which agency officials and others can speak out about the budget.

Slide 20 House budget committee combine their work to propose one initial budget resolution, which must be adopted by May 15 of the year Early in September, the budget committees for each house of congress propose a second budget resolution that sets binding spending limits.

Slide 21 Finally, the Appropriations Committees for each house submit bills to authorize specific spending. Congress sends the appropriations bills to the president, who can sign them into law.

Slide 22 If he vetoes any of the se bills, congress must either come up with enough votes to override the vote usually, this is impossible, or work with the President to write an appropriations bill on which both sides can agree. Once that is completed, the president signs the new bill into the law.

Slide 23 Government officials who take part in the budget process debate how much should be spent on specific programs such as defense, education, and scientific research. They also consider how much should be spent in total.

Slide 24 If the federal government increases its spending or buys more goods and services, it triggers a chain of events that raises output and creates jobs. 6ax cuts work much like higher government spending to encourage the economy to expand.

Slide 25 If the federal govt. increases its spending or buys more goods and services, it triggers a chain of events that raises output and creates more jobs. It could trigger unemployment because price will go down and companies might shut there doors.

Slide 26 Tax cuts work much like higher govt. spending to encourage the economy to expand. If the govt. cuts taxes people will have more money to spend on themselves. Which means they will go out and buy more goods and the economy will do better.

Slide 27 At some stages in the business cycle, the government may choose contractionary fiscal policies. Contractionary fiscal policies try to decrease aggregate demand, and by decreasing the demand, reduce the growth of economic output.

Slide 28 When the federal govt. raises taxes, individuals have less money to spend on goods and services. Firms keep less of their profits and decrease their spending on land, labor, and capital.

Slide 29 On paper, fiscal policies look like powerful tools that can keep the economy in perfect balance. In reality, fiscal policies can be clumsy and difficult to put into practice.

Slide 30 The president and members of congress, who develop the federal budget and the federal govt.’s fiscal policies, are elected officals. If they wish to be reelected, they must make decisions that benefit the people.

Question 1 What is federal budget?

Question 2 what is fiscal policy?

Question 3 What does OMB stand for?

Question 4 what months does a fiscal year begin and end on?

Question 5 What does CBO stand for?

Question 6 What are appropriations bills?

Question 7 What are expansionary policies?

Question 8 What are contractionary policies?

Question 9 What happens when the govt. raises taxes?

Question 10 Why do people protest?