Chapter 34 Post Quiz
Policies for Growth and Stability

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Budget surplus	a. calculates what government revenues, expenditures, and deficits would be if the economy were operating at potential output.
	2. Balanced budget	b. occurs when government spending reduces private investment.
	3. Budget deficit	c. occurs when revenues and expenditures are equal during a given period.
	4. Government debt	d. the difference between the actual budget and the structural budget.
	5. Fiscal policy	e. occurs when expenditures exceed revenue from taxes.
	6. Actual budget	f. refers to the use of taxes and public expenditures to help dampen the swings associated with the business cycle.
	7. Structural budget	g. occurs when all taxes and other revenues exceed government expenditures for a year.
	8. Cyclical budget	h. the total or accumulated borrowings by the government.
	9. Crowding-out	i. the announcement of official target ranges for the inflation rate along with an explicit statement that low and stable inflation is the overriding goal of monetary policy.
	10. Inflation targeting	j. records the actual dollar expenditures, revenues, and deficits in a given period.