Federal Budget- plan for federal gov outlays and revenues for a specified period, usually a year
Budget solution-congressional agreement about total outlays, spending and expected revenues; guides
spending and revenue decisions by the many congressional committees
Continuing resolutions-budget agreements that allow agencies, in the absence of an approved budget,
to spend at the fate of previous years budget.
Entitlement programs- guaranteed benefits for those who qualify for gov transfer programs (SS and
medi)
Annually balanced budget- budget philosophy prior to the great depression; aimed at matching annual
revenues and outlays, except during war times
Cyclically balanced budget- budget philosophy calling budget deficits during recessions to be financed by
budget surpluses during expansions
Functional finance- budget philosophy using fiscal policy to achieve the economy potential GDP, rather
than balancing budgets
Crowding out- displacement of interest-sensitive private investment that occurs when higher gov
defivits drive up market interest rates
Crowding in-potential for gov spending to stimulate private investment in an otherwise dead economy
National debt- net accumulation of federal budget deficits