Inflation
Unemployment
Taxes
Other
Bonus
100
inflation is...
a general increase in prices
100
Cyclical Unemployment-
Cyclical Unemployment- unemployment that rises during economic downturns and falls when the economy improves
100
Top 3 ways in which the government collects taxes-
Income, Property, and Sales.
100
taxes that fund Social Security and Medicare
FICA Taxes-
200
Fiscal Policy is
the use of government spending and revenue collection to influence the economy
200
unemployment that occurs when workers’ skills do not match the jobs that are available
Structural Unemployment
200
a tax for which the percentage of income paid in taxes increases as income increases.
Progressive tax-
200
obtained by removing the effect of price level changes from the nominal value to get a better picture of economic trends.
Real Value of Money-
300
a price index determined by measuring the price of a standard group of goods meant to represent the typical “market basket” of a typical urban consumer.
Consumer Price Index (CPI)-
300
unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for season.
Seasonal Unemployment- unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for season.
300
a tax for which the percentage of income paid in taxes decreases as income increases
Regressive tax-
300
if you have money or more income, you should pay more taxes.
Ability to pay principle-
400
theory that inflation occurs when producers raise prices to meet increased costs.
Cost-Push inflation
400
unemployment that occurs when people take time to find a job.
Frictional Unemployment- unemployment that occurs when people take time to find a job.
400
a tax for which the same percentage of income paid in taxes remains the same for all income levels
Proportional tax-
400
a theory of income tax fairness that says people should pay taxes based on the benefits they receive from the government
Benefits received-
500
theory that inflation occurs when demand for goods and services exceeds existing supplies.
Demand-Pull inflation-
500
the level of employment reached when there is no cyclical unemployment
full-employment-
500
3 criteria for a “good” tax-
Simple, Equal, and Efficient.
500
A federal law passed by Congress on December 19th, 1991 as part of the Federal Deposit Insurance Corporation (FDIC) Improvement Act of 1991.
Truth & Savings Act-
500
Two types of government spending, Mandatory spending is forced while Discretionary refers to spending set on a yearly basis by decision of Congress.
Mandatory & Discretionary Spending-
M
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