1. By: Anna Daugherty, CT Montez, Nishant Patil, and Stephanie Yao
Fiscal Policy
By: Anna Daugherty, CT Montez, Nishant Patil, and Stephanie Yao

2. Recession
Definition: A short-term decline in the economy that occurs as investment sags, production falls off, and unemployment increases.
The quality of life can start to decline which introduces instability into families
Depressions are long lasting and deep recessions

3. Social Regulation
Definition: Government regulation of the quality and safety of products as well as the conditions under which goods and services are produced.
This protects and enhances the quality of life.
Ex: OSHA, EPA, FDA, Clean Air Act, Egg Product Inspection Act, Lead-based Paint Poison Prevention Act

5. Budget Deficit
Definition: The amount by which federal expenditure exceeds federal revenue.
The opposite is budget surplus

7. Business Cycles
Definition: Fluctuations between expansion and recession that are a part of modern capitalist economies.
Between growth and recession/boom and bust.

8. Fiscal Policy
Definition: Federal government policies on taxes, spending, and debt management, intended to promote the nation's macroeconomic goals, particularly with respect to employment, price stability, and growth.
Important parts: surpluses and deficits. These are from manipulating the overall "aggregate levels of revenue and expenditure.

9. Gross Domestic Product (GDP)
Definition: The total market value of all goods and services produced in a country during a year.
Good indicator of expansion/contraction in the economy
Shows how well the economy is doing overall

10. Inflation
Definition: A situation in which there is economic growth, rising national income, high employment, and steadiness in the general level of prices.
When there is too much demand for the available goods and services.
Also may occur if large corporations and unions have the economic power to push prices and wages above competitive levels.

12. Interventionist State
Definition: Alternative to the laissez-faire state; the government takes an active role in guiding and managing the private economy.
During the 1930s this replaced Laissez-faire.
The New Deal brought about numerous reforms.

14. Laissez-faire
Definition: A French term literally meaning "to allow to do, to leave alone." It is a hands-off governmental policy that is based on the belief that government involvement in the economy is wrong.
Active governmental involvement in the economy is wrong.
Individuals should be left free to pursue their self-interests.

15. Means-tested Programs
Definition: Income security program intended to assist those whose incomes fall below a designated level.
Welfare programs like food stamps and Medicare

16. Current event
Governors play a key role in state fiscal policy
They propose budgets, recommend tax changes, and sign or veto tax and spending bills
The Cato report reports grades governors on their fiscal policies from a limited-government perspective
Governors receiving an A are those who have cut taxes and spending the most, whereas governors receiving an F have raised taxes and spending the most.

17. References
Edwards, Chris. “Fiscal Policy Report Card on America's Governors 2018.” Cato Institute, 9 Oct. 2018,
Investopedia. “Recession.” Investopedia, 16 Oct
O'Connor, Karen, and Larry Sabato. American Government: Continuity and Change. Pearson Longman, 2008.