Fiscal and Monetary Policy
The Goals of Economic Policy
Revenues
Deficits and Debt
Expenditures
100
Who controls the Fiscal Policy?
Government, President, and Congress
100
What does Economic Policy reflect?
The priorities of policymakers
100
How many sources of revenue does the federal government have?
5
100
What is budget deficit?
amount of money by which budget expenditures exceed budget receipts
100
What are the 2 main types of healthcare in the US?
Medicare and medicaid
200
Who controls the the Monetary Policy?
Federal Reserve Board and the Federal Reserve Banks
200
What is the first economic policy goal?
1. Fund government services
200
What are the sources of revenue the federal government has? (5)
1. Individual Income Taxes 2. Estate Taxes 3. Payroll Taxes (Social Security & Medicare) 4. Corporate Income Taxes 5. Excise Taxes
200
Sum by which budget receipts exceed annual expenditures
What is budget surplus
200
What are 3 facts about Social Security?
1. Created in 1935 to supplement retirement 2. Expanded to include dependents as well as the disabled 3. Currently: a tax on workers to provide benefits to elderly and disabled
300
What are the Fiscal Policy primary tools? (2)
Taxing and governmental spending
300
What is the second economic policy goal?
2. Encourage/Discourage private-sector activity
300
Which taxes are progressive and regressive? a) Individual Income Tax b) Payroll Taxes c) State and Local Taxes
a) Progressive b) Regressive c) Regressive
300
What is balanced budget?
budget receipts equal budget expenditures
300
What are 2 facts about National Defense?
1. 3rd largest category of federal expenditures 2. Includes Defense Dpt. along with parts of other agencies
400
What is Monetary Policy primarily concerned with?
The flow of money
400
What is the third and fourth economic policy goals?
3. Redistribute income 4. Promote economic growth with stable prices
400
What are the 3 different types of Tax Reform?
1. Flat tax 2. Value Added Tax (VAT) 3. National Sales Tax
400
accumulated indebtedness of government
What is national debt
400
What are the 4 welfare programs that come with income security?
1. Earned income tax credit (EITC) 2. Food stamps 3. Supplemental Security Income (SSI) 4. Temporary Assistance for Needy Families (TANF)
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