entitlement programs
This program provides medical assistance for low-income individuals.
What is Medicaid?
This tax system takes a larger percentage of income from higher earners.
Raising interest rates generally encourages this financial behavior.
What is saving/not spending?
Most federal revenue comes from _____ taxes.
The phase of the business cycle where unemployment is high and GDP is at its lowest.
What is a trough?
Low-income families receive housing assistance through this voucher program.
Section 8
This type of tax is applied to specific harmful goods like alcohol and tobacco.
What is sin tax?
One way the Federal Reserve controls the money supply is by buying and selling these.
What are bonds?
The point where supply and demand meet is called this.
What is MCP?
During this phase, businesses cut jobs, consumer spending decreases, and GDP falls.
What is a contraction/recession?
Government spending on programs like defense and education that must be approved by Congress annually.
What is discretionary spending?
A government spends more than it earns, leading to this financial situation.
What is a deficit?
What fiscal policy might the government use in response to a slow economy?
What is expansionary policy?
This agency ensures food, drugs, and cosmetics are safe for public use.
What is the FDA?
This is the highest point in the business cycle before a downturn begins.
What is a peak?
The difference between social insurance programs and public assistance programs
What is social insurance programs are mandatory and help those who contribute, public assistance are discretionary and help those who qualify for a means test?
This tax system requires all earners to pay the same percentage of their income, regardless of earnings.
What is proportional tax?
A fiscal policy response to a recession could involve doing this to taxes and government spending.
GDP divided by population
What is GDP per capita?
The phase of the business cycle where the economy is growing, jobs are increasing, and GDP is rising.
What is an expansion?
Two examples of social insurance programs
What are Social Security and Medicare?
The U.S. government uses this type of policy to adjust spending and taxes to influence the economy.
What is fiscal policy?
Explain open market operations and what happens when the Fed sells bonds
What is reduces or contracts the money supply?
Inflation is measured by
What is CPI?