Discuss the Process by Which the Federal Budget Is Formulated

question 34

Essay

Discuss the process by which the federal budget is formulated and the legislative process for approving the budget.

---

Definitions:

Total Income

The sum of all earnings received by an individual or entity, including wages, salaries, benefits, and other forms of compensation.

Total Expenditure

The total amount spent on goods and services over a specific period.

Circular-Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.

Supply and Demand

The fundamental economic model describing how prices fluctuate based on the interplay between the quantity of a good available and the desire for that good.