Chapter 18: Economics

2. The belief the government must manage the economy by spending more money when a recession and cutting spending when there is inflation
4. What occurs when the government in one year spends more money than it takes in from taxes
5. Year For the federal government, October 1 through the following September 30
6. The belief that inflation occurs when too much money is chasing too few goods
7. The belief that a combination of monetarism, lower federal spending, and supply-side economics will stimulate the economy
9. Theory The belief that lower taxes and fewer regulations will stimulate the economy
12. Resolution A congressional decision that states the maximum amount of money the government should spend
13. Policy Managing the economy by altering the supply of money and interest rates

1. Debt The total deficit from the first presidency down to the present
3. A claim for government funds that can’t be changed without violating the rights of the claimant
8. Domestic Product (GDP) The total of all good and services produced in the economy during a given year
10. Automatic spending cuts
11. Planning The belief that government plans, such as wage and price controls or the direction of investment, can improve the economy