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AP Am. Govt. Ch. 18 Economic Policy
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Who and what influence the U.S. economy?
What is the most common measure of inflation in the U.S. ?
Describe Keynesian economics.
Define aggregate demand.
What is the purpose of measuring gross domestic product?
Define fiscal policy and give an example of how it works.
Which entity is responsible for reporting to the President on the effect of budgetary
practices on the overall economy as well as situations such as inflation or reduced GNP?
8. Why is the Employment Act of 1946 considered a turning point in American economic
`history?
9. Give an explanation for why Keynesian economic policies do not seem to work in the
real world.
10. Define monetary policy. & Who is responsible for monitoring and advising?
11. What is the essence of supply-side economics?
12. What were the effects of the Reagan tax cuts on revenue and the deficit.
13. What is the Budget and Accounting Act of 1921?
14. The largest budget deficit thus far in U.S. history, in constant dollars occurred during
which Presidential administration?
15. Congress passes a bill authorizing spending limits this fiscal year for the FBI. This
amount of money is termed the FBI’s _____.
16. What is the budget outlay?
17. What is the main function of the Office of Management and Budget?
18. Who initiates the budget-making process?
19. Which entity in the House of Reps. Oversees legislation creating middle-class tax cuts?
20. What are some examples of authorization committees?
21. What is the role of the tax committees?
22. What is the role of the appropriations committee?
23. What are the provisions of the Budget and Impoundment Control Act of 1974?
24. Why was the Congressional Budget office created?
25. What was the goal of the Budget and Impoundment Control act of 1974?
26. How does the timetable for the congressional budgeting process work?
27. What are the lessons of the Gramm-Rudman Act?
28. What is the pay-as-you-go principle?
29. Tax policy is used to do what?
30. Why is significant tax reform normally difficult?
31. Explain the tax reform laws passed by Congress in 1986?
32. What are the arguments in favor of a flat tax? Against?
33. What has been the percentage of federal budget receipts coming from personal income
taxes in the last half of the 20th century?
34. What are entitlements?
35. What has been the single greatest cause of tax increases at the federal level since World
War II?
36. What is the largest portion of the federal budget since the early 1970’s?
37. What is incremental budgeting?
38. To what does the phrase uncontrollable outlays refer?
39. What had been identified as uncontrollable or relatively uncontrollable?
40. How much of the federal budget can be classified as uncontrollable or relatively
uncontrollable?
41. Why is the progressive income tax popular?
42. What are transfer payments?
43. List some examples of a progressive tax.
44. Which groups of people benefit most from U.S. taxing and spending policies.
45. Why does the gap between the wealthy and the poor continue to grow?
46. The richest 20 percent of Americans control about _____percent of the nation’s after-tax
income.
47. Between 1966 (the beginning of Johnson’s Great Society) and 1999, how much had the
distribution of income between the rich and poor changed?
48. A comparison of after-tax income in sixteen Western democracies show that in the
United States, the gap between the very rich and the very poor is _____.
49. Do you have a creative way in which you would like to recommend to review the
American Government content for the May 4th exam?
50. If yes to 49 please describe the plan.
Have a wonderful spring break. Spend some time reviewing for your AP U.S. Gov/Pol exam.