Download Federal Budget FRQ

The federal budget is more than a document. It reflects policy making, by
allocating benefits and burdens.
a. Define “tax expenditure.” Explain how tax expenditures impact the federal
budget, giving a specific example.
b. Define “non discretionary (uncontrollable) expenditure.” Explain one reason
why uncontrollable expenditures have increased since 1965, giving a
specific example.
c. Define two terms from the list below and explain one way in which each has
been used to impact economic performance.
a. Fiscal policy
b. Monetary policy
c. Keynesian economic theory
d. Supply-side economic theory