Fiscal policy:
- changes in expenditure or tax revenues of the federal government
Taxes: government can increase or decrease taxes

Spending : government can increase or decrease spending

Deficits, surpluses, debit:
-Balanced budget : revenue = expenditures
-Budget deficit: revenue < expenditure
-Budget surplus : revenue > expenditure
-Government debt : sum of a deficits -sum of all surpluses
-Government borrows money from : individuals, financial institutions, corporations, foreign entities or foreign governments

Fiscal policy two options :
-Discretionary fiscal policy (actions)
-Expansionary fiscal policy -think deficit
-Contractionary fiscal policy -think surplus
-Non-discretionary fiscal policy (no action)