1. Fiscal Policy

2. Government use of taxing and spending to stabilize the economy
Fiscal Policy
Government use of taxing and spending to stabilize the economy

3. Federal Budget
Written document indicating the amount of money the government expects to receive & spend for a year

4. CBO (Congressional Budget Office) – helps Congress with its decisions
Federal Budget
OMB (Office of Management & Budget) – in the exec. dept… manages the budget
CBO (Congressional Budget Office) – helps Congress with its decisions

5. Federal Budget
Appropriations Bill – a bill that sets money aside for specific spending

6. Fiscal Year 12 month period… not January – December
Oct. 1 through Sept 30 for government fiscal year

7. Expansionary Policy
Fiscal policies that attempt to increase economic output, such as higher spending or tax cuts

8. Contractionary Policies
Fiscal policies that attempt to decrease economic output, such as lower spending or higher taxes

9. Limits of Fiscal Policy
Difficulty of changing spending levels
Predicting the future
Delayed results
Political Pressures
Coordinating Fiscal Policy

10. The End