Review for Policy Test

Its very close to Summer…so enjoy the

beach theme.

Part 1: Multiple Choice

4 types of policy makingMajoritarianInterest GroupClient PoliticsEntrepreneurialBe able to ID examples

Economic Terms

DeficitDebtGDPInflationRecession

Economic Policies

MonetarismLeave printing alone and let

the free market operate - RKeynesianism

Spending more when in a recession and cutting spending when there is inflation - D

Economic Planning Government plans wages, price controls, and the direction of investments - Socialist

Supply Side Tax CutsLower taxes and fewer regulations will stimulate the economy - R

ReaganomicsCombination of monetarism,

lower fed spending and supply side

Reduce size of government, stimulate growth and increase military strength - R

Federal Reserve BoardYou should remember this form your writing prompt - buys and sells federal government securities, regulates amount of money a member bank must keep as reserves, change interest rates of banks

Congressional Budget Act of 1974

Congress studies and gets analysis from the CBO (Congressional Budget Office)

Could submit a budget resolution that would create a ceiling on what the government could spend

Entitlements

A claim for government funds that cannot be changed without violating the rights of the claimant.

The reason why it is hard to get new programs

Popular programs

Balanced Budget Act of 1985

First attempt to cut deficit

Across the board sequesters until the federal deficit had disappeared

Did not work

Budget Enforcement Act of 1990

A “pay as you go” approach, if you increase spending in one program, you need to cut in another

4 factors that shaped welfare in the USRestrictive view on who is

entitledSlower to embrace itStates play are large roleNon-government

organizations to play a large role

Insurance ProgramsOASDIMedicareAssistance ProgramsUnemploymentTANFFood Stamps

Social Security Issues

Bankrupt

Medicare - for the elderly

Medicaid - For the less-fortunate

AFDCChanged toTANF

Who holds the most power in foreign policy?

The President

Views of foreign policy

IsolationismDisengagementContainment

Elites - anyone who works in that sector in the government or in think tanks

National Security Council

Similar job as the State Department, deals with foreign policy

Structure of defense decision making

Joint Chiefs of Staff