Study Guide
1. Between 1955 and 2006, Federal Spending as a percentage of GDP ranged between what percentages?
2. The United States Constitution states that the budget follows a process. Briefly describe the process?
3. A continuing resolution allows what to happen when what occurs?
4. A continuing resolution allows spending to go on for what period of time?
5. Laws that change the tax code must begin in what branch of the government?
6. The Fiscal Year for the Federal Government begins on what month and date?
7. Programs such as Social Security and Medicare are what type of spending items for budget purposes? Hint: there are two, which one is associated with the above programs.
8. When the federal government borrows large amounts it may limit the ability of the private sector to get financial capital for its purposes. Economists would call this _______________.
9. The trends in the share of mandatory and discretionary spending suggest that the percentage attributable to mandatory is doing what? What did President Clinton predict?
10. Spending on programs for which there is an existing legal obligation is labeled
11. Spending on programs for which there is no existing legal obligation to continue is called
12. What is the largest single item in the Federal Budget is
13. Real federal spending (in dollars) on Health Care functions has done what over time? Is it a small or large problem?
14. Using marginal analysis, an economist would judge the proper size of government by comparing
Remember the example in class?
15. Using marginal analysis, an economist would judge the proper distribution of government spending by comparing? Remember the example in class?
16. The national debt is defined as? What is a budget deficit?
17. An increasing portion of the U.S. national debt is held by whom or what?
18. Define generational accounting and who is affected by what means?
19. One of the most significant factors causing the recession of 2007 - 2009 was?
20. The stimulus package actually implemented by the Bush Administration in 2008 included what for individuals and married couples.
21. As the U.S. recession was developing in the summer of 2008, oil prices peaked near (how much per barrel)?
22. The stimulus package proposed in 2009 by President Obama included what spending provisions>
23. As unemployment rose in 2008, non-discretionary fiscal policy measures included spending increase for what programs.
24. The stimulus package adopted in 2009 by President Obama included what major component provisions.
25. The deepening recession in late 2008 sharply reduced consumer confidence, causing what to happen to AD?
26. If an adverse shock reduces the level of aggregate demand, it is likely to lead to what effect on RGDP and employment?
27. The main effect on the economy of the financial sector crisis in late 2008 did what to the economy?
28. If not corrected, the financial sector crisis of late 2008 would have tended to?
29. Discretionary fiscal policy designed to counteract a reduction in aggregate demand might include increases in what programs?
30. Non-discretionary fiscal policy designed to counteract a reduction in aggregate demand might include increases in what programs?
31. A factor tending to slow the U.S. economy early in the recession of 2007 - 2009 was-what was going on in the energy markets?
32. The appropriations process is smooth or not?
33. The impending retirement of aging Baby Boomers is quite likely to re-establish the trend of greater mandatory spending? Do you agree?
34. "Exotic" mortgages became popular in part because home prices were expected to always rise in value? Was this faulty thinking or opportunistic?
35. Non-discretionary fiscal policy designed to counteract a reduction in aggregate demand might include: What non-discretionary spending programs would you expect to go up during a recession?
36. Discretionary fiscal policy designed to counteract a reduction in aggregate demand might include: What discretionary spending programs would you expect to go up during a recession?