1. The federal government takes in money for the budget through taxation and borrowing. These decisions have a powerful impact on the overall economy.

2. The use of government spending and revenue collection (taxation) to influence the economy.

3. A document indicating the amount of money government expects to receive & spend in a certain year.

4. A 12 month period, though not always Jan.-Dec. The federal government uses Oct. 1 – Sept. 30.

5. Part of the executive office where spending proposals are sent and the federal government’s budget is managed.

6. Congressional Budget Office (CBO) The place where Congress gets independent (non-partisan) economic data to help with its budget decisions.

7. Bill agreed upon by the Senate and House that authorizes new spending for the year. It is sent to the President for his approval. If not approved by Sept. 30 then short term emergency “stop gap” spending is approved. If this is not done, all but essential federal offices can “shut down”.

8. Expansionary Fiscal Policy Fiscal policies that try to increase the country’s output and improve the economy. This is done by raising government spending and lowering taxes.

9. Contractionary Fiscal Policy Fiscal policies that try to decrease the country’s output and slow down the economy. This is done by lowering government spending and raising taxes.