Chapter 16 Test Government
Terms in this set (18)
Which modern president pursued a laissez-faire approach to the economy?
What do supply side economics encourage?
Large tax cuts- Give the cut to the wealthy and its trickles down to the poor
Which party favors big business?
Which party supports taxes and spending?
Democrats- large government programs
How does the Federal Reserve regulate the money supply?
It Adjusts the discount rate
What are the four ways the nation's economy is measured?
1. Unemployment rate
2. The rise and fall of consumer price index
3. The growth and decline of Gross National Product
4. The rise and fall of Gross Domestic Product
What is fiscal policy?
Tax and Spend
Where does the majority of the federal government's money come from?
Which area of budgetary spending has increased the most in the last 20 years?
Entitlement Programs- Social Security, Medicare, Medicaid
Which branch has the power of the purse?
Congress / Legislative
What happens if Congress doesn't pass a budget by the beginning of the fiscal year?
Congress must pass a continuing resolution
Where can the government NOT borrow money from?
The US Treasury
Why did Congress pass the Congressional Budget and Impoundment Control Act
Nixon practiced cutting off funds for programs that would increase the budget
What is an example of a contributory entitlement program?
Why is it difficult to reduce Social Security benefits?
The older voters support Social Security
Which legislation guarantees unpaid emergency medical assistance to workers?
The Family Medical Leave Act
What was the reasoning behind creating a safety net for individuals?
Even with government cutbacks, people in need would receive benefits
What is the difference between progressive and proportional tax?
Progressive Tax- Collects more money from the rich than the poor
Proportional Tax- Collects the same amount of money Ex) Sales Tax