In the following situation, determine if the type of spending described is $\bold{mandatory}$ or $\bold{discretionary}$.

• job retraining for unemployed workers

Match the term to the correct definition. A. Deficit spending B. Budget deficit C. Budget surplus D. National debt E. Balanced budget F. Treasury Inflation-Protected Securities G. Federal Reserve H. Monetizing the debt I. Debt limit J. Public debt K. Intragovernmental debt L. Dividends M. Crowding- out effect N. Servicing the debt

___________ The payment of interest on the national debt.

Match the term to the correct definition. A. Fiscal policy B. Macroeconomic equilibrium C. Disposable income D. Expansionary fiscal policy E. Contractionary fiscal policy F. Discretionary fiscal policy G. Automatic stabilizers H. Demand- side policy I. Supply- side policy J. Inside lag K. Recognition lag L. Implementation lag M. Classical economics N. Keynesian economics O. Outside lag

___________ Designed to help the economy by increasing or decreasing aggregate demand.

Match the following terms to the correct definitions. A. Treasury bill B. Treasury note C. Treasury bond D. Face value E. Coupon payments F. Government security G. Fiscal year H. Federal budget I. Mandatory spending J. Entitlement programs K. Means- tested L. Transfer payments M. Appropriation bills N. Discretionary spending

___________ A security issued by the U.S. Treasury that matures in $4$, $13$, $26$, or $52$ weeks.

Match the term to the correct definition. A. Deficit spending B. Budget deficit C. Budget surplus D. National debt E. Balanced budget F. Treasury Inflation-Protected Securities G. Federal Reserve H. Monetizing the debt I. Debt limit J. Public debt K. Intragovernmental debt L. Dividends M. Crowding- out effect N. Servicing the debt

___________ The difference between the amount of government payments and the amount of government revenues in a particular year when revenues exceed the payments.

Match the following terms to the correct definitions. A. Treasury bill B. Treasury note C. Treasury bond D. Face value E. Coupon payments F. Government security G. Fiscal year H. Federal budget I. Mandatory spending J. Entitlement programs K. Means- tested L. Transfer payments M. Appropriation bills N. Discretionary spending

___________ Spending that is required by law.

Match the term to the correct definition. A. Deficit spending B. Budget deficit C. Budget surplus D. National debt E. Balanced budget F. Treasury Inflation-Protected Securities G. Federal Reserve H. Monetizing the debt I. Debt limit J. Public debt K. Intragovernmental debt L. Dividends M. Crowding- out effect N. Servicing the debt

___________ The money the federal government owes to government programs such as Social Security and Medicare.

Match the term to the correct definition. A. Fiscal policy B. Macroeconomic equilibrium C. Disposable income D. Expansionary fiscal policy E. Contractionary fiscal policy F. Discretionary fiscal policy G. Automatic stabilizers H. Demand- side policy I. Supply- side policy J. Inside lag K. Recognition lag L. Implementation lag M. Classical economics N. Keynesian economics O. Outside lag

___________ The time between a policy action and the resulting effect on the economy.

Match the following terms to the correct definitions. A. Treasury bill B. Treasury note C. Treasury bond D. Face value E. Coupon payments F. Government security G. Fiscal year H. Federal budget I. Mandatory spending J. Entitlement programs K. Means- tested L. Transfer payments M. Appropriation bills N. Discretionary spending

___________ Payments of a small percentage of the face value of a security.

Match the term to the correct definition. A. Fiscal policy B. Macroeconomic equilibrium C. Disposable income D. Expansionary fiscal policy E. Contractionary fiscal policy F. Discretionary fiscal policy G. Automatic stabilizers H. Demand- side policy I. Supply- side policy J. Inside lag K. Recognition lag L. Implementation lag M. Classical economics N. Keynesian economics O. Outside lag

___________ The time it takes economists and government officials to realize that the economy is experiencing a problem.

Match the term to the correct definition. A. Deficit spending B. Budget deficit C. Budget surplus D. National debt E. Balanced budget F. Treasury Inflation-Protected Securities G. Federal Reserve H. Monetizing the debt I. Debt limit J. Public debt K. Intragovernmental debt L. Dividends M. Crowding- out effect N. Servicing the debt

___________ The amount of money that the federal government has borrowed over time to fund annual budget deficits and has not yet repaid.

Match the term to the correct definition. A. Deficit spending B. Budget deficit C. Budget surplus D. National debt E. Balanced budget F. Treasury Inflation-Protected Securities G. Federal Reserve H. Monetizing the debt I. Debt limit J. Public debt K. Intragovernmental debt L. Dividends M. Crowding- out effect N. Servicing the debt

___________ The money owed to investors by the federal government.

Match the term to the correct definition. A. Fiscal policy B. Macroeconomic equilibrium C. Disposable income D. Expansionary fiscal policy E. Contractionary fiscal policy F. Discretionary fiscal policy G. Automatic stabilizers H. Demand- side policy I. Supply- side policy J. Inside lag K. Recognition lag L. Implementation lag M. Classical economics N. Keynesian economics O. Outside lag

___________ Aims to stimulate the economy by increasing aggregate supply.

Match the following terms to the correct definitions. A. Treasury bill B. Treasury note C. Treasury bond D. Face value E. Coupon payments F. Government security G. Fiscal year H. Federal budget I. Mandatory spending J. Entitlement programs K. Means- tested L. Transfer payments M. Appropriation bills N. Discretionary spending

___________ Payments for which the government receives no goods or services in return.