Jeopardy Terms Steady as you go Policies Who’s Who? Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final Jeopardy Schools of thought

$100 The use of government spending and revenue collection to influence the economy.

$100 What is a fiscal policy?

$200 Document estimating the federal Government’s revenue and authorizing Its spending for the coming year.

$200 What is the federal budget?

$300 This is where all appropriations bills are introduced.

$300 What is the House of Representative?

$400 The type of policy government uses that involves increased spending and tax cuts.

$400 What is expansionary fiscal policy?

$500 Agency within the Executive Office that helps prepare the Budget.

$500 What is the OMB (Office of Management and Budget?

$100 Aggregate demand is decreased as a Result of this type of policy.

$100 What is contractionary fiscal policy? (decreased spending and increased taxes)

$200 This type of spending cannot be cut because it is fixed by law.

$200 What are entitlement programs? (Medicare, Medicaid, Social Security, VA benefits, etc.)

$300 Mis-calculations that lead to inflation And short term benefits are considered Criticisms of this type of fiscal policy.

$300 What is expansionary fiscal policy?

$400 This branch of government is Responsible for creating the budget.

$400 What is the Executive Branch?

$500 Agency that is part of the legislature that provides independent economic data to help make decisions about the federal budget.

$500 What is the CMB (Congressional Budget Office)?

$100 School of thought based on the idea that demand drives the economy.

$100 What demand-side economics?

$200 The maximum output that an economy can sustain over a period of time without increasing inflation. (Often called full Employment)

$200 What is productive capacity?

$300 Keynesian economics uses this Approach that encourages government Action to help the economy.

$300 What is demand-side economics?

$400 Every one dollar change in fiscal policy creates a change greater than one dollar in the national income?

$400 What is the multiplier effect?

$500 According to this theorist, high taxes cause tax revenues to fall because workers are not motivated to work and produce goods.

$500 Who is Arthur Laffer?

$100 Opponents of Keynesian policy Argue that it was this that brought The U.S. out of the Great Depression.

$100 What was WWII?

$200 School of thought based on the idea that the supply of goods drives the economy.

$200 What is supply-side economics?

$300 Increase and decrease automatically depending On changes in GDP and personal income.

$300 What are automatic stabilizers? (taxes and transfer payments, e.g. unemployment, Welfare assistance, etc.

$400 This could shift the production possibilities curve to the right allowing for output of both goods to increase.

$400 What is technology, immigration, importing resources?

$500 Even if policymakers do not make changes in taxes and transfer payments they will increase and decrease automatically when this indicator increases and decreases.

$500 What is GDP?

$100 Occurs when tax revenues are not sufficient to cover budget expenditures?

$100 What is a budget deficit?

$200 A budget deficit at the end of the Fiscal year causes this to increase.

$200 What is the national debt?

$300 Government borrows money to cover budget deficits by issuing this 30 year debt instrument.

$300 What are treasury bonds?

$400 When the government borrows money through issuing bonds, its reduces the amount of money available to the private sector to invest in business. This is know as ………

$400 What is the crowding-out effect?

$500 John Kenneth Galbraith who served FDR, JFK and LBJ was the inspiration for this early childhood education program under LBJ.

$500 What is Head Start?

Final Jeopardy Reagan’s top supply-side economic advisor who pushed for more Lassez-faire policies?

Final Jeopardy Answer Who was Milton Friedman?