1. Sherean Ali, Claire Edelson, Christian Lyon, & Lisa Reimann

2. Monetarism=inflation occurs when too much money is chasing too few goods. Economic Planning=plans like wage and price controls or direction of investment, can improve the economy. “Reaganomics”= combination of monetarism, lower federal spending, and supply-side economics will stimulate the economy. Keynesianism= spend more money when in a recession and cut spending when there is inflation & economy performance

3.  “Troika” (OMB, CEA, Treasury) + President + “The Fed” + Congress = Work together to make Econ Policies  Pocketbook Issue= economic conditions are strong association of amount of success the incumbent party has for staying in the White House & seats held by WH party in Congress.  Economic choices made by politicians are shaped generally by ideological differences in parties. All politicians want low unemployment & no inflation

4.  Deficit=governments spends more money than it collects in taxes in a given year  National Debt= total amount of deficits since 1 st Presidency  GDP=total of all goods & services produced in country in a given year  Raising Taxes & Cutting Spending can reduce deficit and create progress to lower national debt

5.  monetary policy  Board of Governors: 7 members  appointed by President and confirmed by Senate  14 year term. The chairman is appointed or reappointed every 4 years from the board.  the fed can increase and decrease money supply and interest rates  selling and buying federal government securities  reserve requirements  Discount rate "Gr eenspan Says U.S. May Soon Reach Borrowing Limit - Bloomberg." Bloomberg - Business & Financial News, Breaking News Headlines. Web. 03 Jan. 2011.. " FRB: Chairman Bernanke." Board of Governors of the Federal Reserve System. 18 Nov. 2010. Web. 03 Jan. 2011..

6.  Expansionary: ↑ gov’t spending & ↓ taxes  Contractionary: ↓ gov’t spending & ↑ taxes  Fiscal year: October 1 st to September 30 th 10/1/10-9/30/11 is “fiscal 2011” or “FY 2011” Budget Enforcement Act of 1990

7.  Budget  1974 Congressiol Budget Act  Feb. Presidential budget submitted to 1 House & 1 Senate committee  Committees w/analysis from Congressional Budget Office (CBO)  Budget Resolution congressional decision on where to cap government spending.  Entitlements  Reagan ’81 cuts to authorization & appropriations

8.  Majoritarian politics (everyone pays them)  Client politics (exemptions, exclusions and deductions)  US taxes are slightly progressive  lighter burden than much of the world

9.  1913 16 th Amendment b/c 1895 unconstitutional  Taxes remained high after WWII  The tax reform of 1986 shifted industry savings to people and cut down on legal and illegal tax evasion.  Deductions work like subsides  Cut out loopholes and lowered rates  Loopholes are client politics