The Federal Government and Fiscal Policy

Name: ___________________________ Date:___________

THE ROLE OF GOVERNMENT

THE FEDERAL GOVERNMENT AND FISCAL POLICY

Directions: Use the .pdf "A Citizen's Guide to the Federal Budget" located in Mrs. deButts’ Global Drive to respond to the following:

1. In your own words write a brief paragraph which summarizes the United States Budget.

2. Use Chart 1-2 to respond to the following: In 1998, or the last year charted, which of the industrialized nations allocated the smallest share of its GDP to government spending (federal, state, and local combined)?

3. Which industrialized nation allocated the highest percentage of GDP to government spending?

4. Which branch of the federal government, Executive, Legislative, or Judicial, is responsible for the preparation of the Federal Budget?

5. What government official is ultimately responsible for the preparation and submission of the Federal Budget?

THE ROLE OF GOVERNMENT: Part ii

Directions part II: Read the section entitled: “Where the Money Comes From- and Where it Goes” and respond to the following:

1. In your own words, write a paragraph about how the federal government plans its budget.

2. List government revenues by category beginning with the largest percentages.

3. What is the estimated about of money that the federal government takes in each year?

4. List government expenditures by category beginning with the largest percentages.

5. What expenditures are classified as "Non-Defense Discretionary"?

6. Who are the beneficiaries of Medicare and who are the beneficiaries of Medicaid?

7. What is the difference between Medicare and Medicaid?

8. What is the estimated amount that the federal government spends during the fiscal year when it received $2,000 billion?