Determine the organizational structure of the text used in each passage. (Vocabulary terms are bolded; their definitions are in the glossary.)
Question 1:
The United States Congress controls fiscal policy. Fiscal policy is the laws and regulations that make changes in government spending, borrowing and tax rates. For example, Congress can raise or lower tax rates on individuals and businesses. They can also raise or lower the amount of government spending through the national budget creation process. Another feature of fiscal policy is lowering or raising the amount of money the national government may borrow.
What is the organizational structure used in this passage?
Question 2:
The Federal Reserve controls monetary policy. Unlike fiscal policy, which controls the amount of money in circulation by controlling government spending, monetary policy is the process of controlling the money supply that is controlled by the Federal Reserve. The Federal Reserve can decrease the amount of money in circulation by raising interest rates, buying or selling securities (bonds or treasury notes), or by setting a higher reserve requirement for banks to keep more money in reserve rather than loaning it to businesses or individuals. Both monetary and fiscal policy can increase or decrease the amount of money in circulation.
What is the organizational structure used in this passage?
Question 3:
The federal budget process begins with the federal agencies and departments submitting a detailed budget to the Office of Management and Budget (OMB), which is part of the executive branch. Next, the OMB makes recommendations to the president for his review. Then, the budget is delivered to Congress. The House and Senate Budget Committees issue the concurrent budget resolution. The next step is for the full House and Senate to approve the budget. The final step is to send the budget to the president for his approval. If the president approves the budget, it then goes into effect.
What is the organizational structure used in this passage?
Question 4:
When market failures—such as rising unemployment—occur, Congress can use fiscal policy to correct the problem. One solution is to lower the tax rate so people have more money to spend, and businesses sell more goods and services. This helps lower unemployment because businesses will hire more workers to produce more goods. Another answer to the problem is to increase government spending. By taking this action, businesses sell more goods to the government, and businesses hire more workers to produce more goods.
What is the organizational structure used in this passage?
Question 5:
Congress and the president do not have total control over the budget because about 70% of the total federal budget are items that are called "uncontrollable." These are items that are required by earlier laws. Examples of "uncontrollables" are entitlements such as Social Security, Medicare, Medicaid and veterans' benefits. Because of these items, Congress and the president can only make annual adjustments to approximately 30% of the federal budget. In order to have more control of the federal budget, laws would need to be passed to reduce the entitlements. Political leaders are reluctant to take this action because these programs are popular with the American public. Any action to reduce entitlements may consequently lead to them not being reelected.
What is the organizational structure used in this passage?