automatic stabilizers  automatic tax and spending changes that occur over the course of the business cycle that tend to stabilize the fluctuations in real GDP.
balanced budget  a budget for which tax revenues equal spending.
budget deficit  the amount by which government spending exceeds tax revenues.
budget surplus  the amount by which tax revenues exceed government spending.
countercyclical policy  a policy designed to offset the fluctuations in the business cycle.
countercyclical policy  a policy designed to offset the fluctuations in the business cycle.
debt to GDP ratio  the total amount of outstanding loans the federal government owes divided by nominal GDP.
discretionary fiscal policy  changes in tax or spending policy requiring legislative or administrative action by the president or Congress.
federal budget  a summary of the federal government’s proposals for spending, taxes, and the deficit.
federal debt  the total amount of outstanding loans owed by the federal government.
structural surplus  the level of the government budget surplus under the scenario where real GDP is equal to potential GDP; also called the full-employment surplus.