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      • Chapters 13-21 Outlines >
        • Chapter 13: European Society in the Age of the Renaissance
        • Chapter 14: Reform and Renewal in the Christian Church
        • Chapter 15: The Age of Religious Wars and European Expansion
        • Chapter 16: Absolutism and Constitutionalism in Western Europe
        • Chapter 17: Absolutism in Eastern Europe
        • Chapter 18: Toward a New World-view
        • Chapter 19: The Expansion of Europe in the Eighteenth Century
        • Chapter 20: The Changing Life of the People
        • Chapter 21: The Revolution in Politics
      • Chapters 22-31 Outlines >
        • Chapter 22: The Revolution in Energy and Industry
        • Chapter 23: Ideologies and Upheavals
        • Chapter 24: Life in the Emerging Urban Society
        • Chapter 25: The Age of Nationalism
        • Chapter 26: The West and the World
        • Chapter 27: The Great Break: War and Revolution
        • Chapter 28: The Age of Anxiety
        • Chapter 29: Dictatorships and the Second World War
        • Chapter 30: Cold War Conflicts and Social Transformations
        • Chapter 31: Revolution, Reunification, and Rebuilding
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      • Chapter 1: Understanding American Politics
      • Chapter 2: The Constitution
      • Chapter 3: Federalism
      • Chapter 4: Civil Liberties
      • Chapter 5: Public Opinion
      • Chapter 6: The Media
      • Chapter 7: Political Parties
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      • Chapter 8: Elections
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      • Chapter 12: The Bureaucracy
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        • Chapter 1: Stats Starts Here
        • Chapter 2: Data
        • Chapter 3: Displaying and Describing Categorical Data
        • Chapter 4: Displaying Quantitative Data
        • Chapter 5: Describing Distributions Numerically
        • Chapter 6: The Standard Deviation as a Ruler and the Normal Model
        • Chapter 7: Scatterplots, Association, and Correlation
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        • Chapter 9: Regression Wisdom
        • Chapter 10: Re-expressing Data: Get It Straight
        • Chapter 11: Understanding Randomness
        • Chapter 12: Sample Surveys
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      • Chapter 14-27 Notes >
        • Chapter 14: From Randomness to Probability
        • Chapter 15: Probability Rules!
        • Chapter 16: Random Variables
        • Chapter 17: Probability Models
        • Chapter 18: Sampling Distribution Models
        • Chapter 19: Confidence Intervals for Proportions
        • Chapter 20: Testing Hypotheses about Proportions
        • Chapter 21: More about Tests
        • Chapter 22: Comparing Two Proportions
        • Chapter 23: Inferences about Means
        • Chapter 24: Comparing Means
        • Chapter 25: Paired Samples and Blocks
        • Chapter 26: Comparing Counts
        • Chapter 27: Inferences for Regression
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  • AP Microeconomics
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      • Outlines for Chapters 1-10 >
        • Chapter 1: Limits and Choices
        • Chapter 2: Markets, Circular Flow
        • Chapter 3: Supply and Demand
        • Chapter 4: Public, Private Sectors
        • Chapter 5: US and the Global Economy
        • Chapter 6: Elasticity and Surplus
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      • Outlines for Chapters 11-22 >
        • Chapter 11: Monopolistic Competition and Oligopoly
        • Chapter 12: Resource Demand
        • Chapter 13: Wage Determinants
        • Chapter 14: Rent, Interest, Profit
        • Chapter 15: Resource/Energy Economics
        • Chapter 16: Public Goods, Externalities, Information Asymmetries
        • Chapter 17: Taxation and Public Choice
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        • Chapter 21: Health Care
        • Chapter 22: Immigration
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  • AP Macroeconomics
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      • Outlines for Chapters 23-31 >
        • Chapter 23: Introduction to MacroEconomics
        • Chapter 24: Output and Income
        • Chapter 25: Economic Growth
        • Chapter 26: The Business Cycle, Unemployment, Inflation
        • Chapter 27: Macro Economic Relationships
        • Chapter 28: Aggregate Expenditures
        • Chapter 29: Aggregrate Supply and Demand
        • Chapter 30: Fiscal Policy, Deficits, Debt
        • Chapter 31: Money and Banking
      • Outlines for Chapters 32-38 >
        • Chapter 32: Money Creation
        • Chapter 33: Monetary Policy
        • Chapter 34: Financial Economics
        • Chapter 35: More Aggregate Supply Analysis
        • Chapter 36: Current Macro Economic Issues
        • Chapter 37: International Trade
        • Chapter 38: Balance of Payments, Exchange Rates, Trade Deficits
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The Budget

Discretionary Fiscal Policy: involves deliberate decisions by the president and Congress to run budget surpluses or deficits; can be done by changing the amount of taxing and government spending 

Mandatory Spending: funding required to fund programs such as unemployment insurance, food stamps, and Medicaid; spending increases when economy declines 

Budget and Accounting Act of 1921: gave the president authority to prepare an annual budget and submit it to Congress for approval

Office of Management and Budget (s): assists the president and handles the details of the budget preparation; puts together a budget that reflects the president's preferences and priorities, as wells as modifies and revises agency budget request downward; president usually agrees with OMB decisions

Fiscal Year: begins on October 1 of one calendar year and runs through September 30 of the following calendar year

Appropriations Committees: provide funding need to carry out programs; often deny some or all of the funding authorized by the legislative committees

Budget and Impoundment Control Act of 1974: establishes a budget process that includes setting overall levels of revenues and expenditures, the size of the budget surplus or deficit, and priorities among different “functional” areas (ie, national defense, transportation, agriculture, etc) 

Congressional Budget Office: professional staff of technical experts that assist the budget committees and provide members of Congress with their own source of budgetary information so they would be more independent of the OMB

Continuing Resolution: authorizes agencies to continue operating on the bases of the previous year's appropriation until approval of their new budget

Economic Growth and Tax Relief Reconciliation Act of 2001 (p): lowered income tax rates across the board, expanded deductions and provided taxpayers with rebates in the summer and early fall of 2001: up to $300 for single tax filers, $500 for heads of households, and $600 for married couples

National Debt: sum of the annual budget deficits

Budget Deficit: occurs when the government spends more money than it takes in

Gramm-Rudman-Hollings Act of 1985: created a procedure for automatic deficit reduction: 
1. Budget deficit goals of $171.9 billion and $144 billion were set for 1986 and 1987 . After that, the deficit goal would be lowered annually by $36 million decrements until it reached zero in 1991
2. Several programs were exempted from automatic budget cuts, including Social Security, Medicaid, veteran's benefits, food stamps, Aid to Families with Dependent Children child nutrition, and interest on the national debt. 
3. If at the beginning of a fiscal year the deficit target was not met, then, by a process called sequestration, automatic, across-the-board budget cuts, divided equally between nonexempt domestic and military programs, would be levied, sufficient to meet the deficit target

Budget Enforcement Act of 1990: set limits on discretionary spending and created a “pay as you go” procedure, requiring that increases in spending be offset by decreases in other appropriations so there would be no increase in the deficit

Omnibus Budget Reconciliation Act of 1993 (p): incorporated a mix of tax increases and entitlement reductions; the top income tax rate was increase and those with very high incomes were assessed a surcharge, also included corporate tax increases, and increases in the tax that high-income Social Security recipients would pay; placed limits on the Medicare program

Budget Surplus: occurs when the government takes in more than it spends

Entitlement Program: income security program to which all those meeting eligibility criteria are enrolled  


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