Chapter 15 Vocabulary Worksheet
1. Keynesian economics
2. budget deficit
3. federal budget
4. fiscal policy
5. automatic stabilizer
6. national debt
7. classical economics
8. multiplier effect
9. crowding-out effect
10. expansionary policy
A. a situation in which the government spends more than it takes in.
B. the idea that free markets can regulate themselves.
C. the use of government spending and taxes to influence the economy.
D. A government program that changes automatically depending on GDP and a person’s income.
E. all the money the government owes to bondholders.
F. fiscal policy, like higher spending and tax cuts, that encourage economic growth.
G. the idea that every one dollar of government spending creates more than one dollar in economic activity.
H. the loss of funds for private investment due to government borrowing.
I. A plan for the federal government’s revenues and spending for the coming year.
J. A form of demand side economics that encourages government action to increase or decrease demand and output.
1. Keynesian economics
2. budget deficit
3. federal budget
4. fiscal policy
5. automatic stabilizer
6. national debt
7. classical economics
8. multiplier effect
9. crowding-out effect
10. expansionary policy
A. a situation in which the government spends more than it takes in.
B. the idea that free markets can regulate themselves.
C. the use of government spending and taxes to influence the economy.
D. A government program that changes automatically depending on GDP and a person’s income.
E. all the money the government owes to bondholders.
F. fiscal policy, like higher spending and tax cuts, that encourage economic growth.
G. the idea that every one dollar of government spending creates more than one dollar in economic activity.
H. the loss of funds for private investment due to government borrowing.
I. A plan for the federal government’s revenues and spending for the coming year.
J. A form of demand side economics that encourages government action to increase or decrease demand and output.