Unemployment
What is frictional unemployment?
Unemployment caused by workers who are "between jobs"
What is "Demand-Pull Inflation?"
All sectors in the economy try to buy more goods and services than the economy can produce.
What is a "sin" tax?
relatively high tax designed to raise revenue and reduce consumption of socially undesirable products
What is deficit spending?
spending in excess of revenues collected
How do most people make money in the stock market?
Buying low and selling high
Seasonal Unemployment
Claims that rising input costs (energy and organized labor) drive up the cost of products for manufacturers.
What is Proportional taxation?
Imposes same tax percentage on everyone
What is the difference between Public and Private debt?
public debt is different from private debt because public debt is owed to ourselves and private debt is owed to others.
What are Capital Gains?
increase in a capital asset's value over its original purchase price
Who is part of the Civilian Labor Force?
All persons age 16 and above employed or actively seeking employment
How is Inflation measured?
“Price Index” which is a statistical measure used to
measure changes in the level of prices over time.
What is Progressive taxation?
tax rate which imposes a higher percentage rate on higher incomes than lower ones
What are Treasury notes?
Treasury notes are a type of U.S. Treasury security, which are debt securities issued by the U.S. government to finance its operations
Do people with long term capital gains pay more or less in taxes?
less
What is the GDP gap?
The difference between actual GDP and potential GDP
What is "Wage-Price Spiral?"
A self-perpetuating spiral of wages and prices becomes difficult to stop.
What is Regressive taxation?
Imposes a higher rate of taxation on lower incomes than higher ones
How does the government raise revenue?
increasing taxes
What are stocks?
Stocks are a type of security that gives stockholders a share of ownership in a company
Name 2 cost of instability
political instability, uncertainty, misery index, crime, poverty, or family instability.
Reduced purchasing power, Distorted spending patterns, Encouraged speculation, Distorted distribution of income.
ways for people to avoid certain taxes.
What are some federal government expenses?
Social security, National Defense, Medicare, etc.
What is a good interest rate on an investment?
7% or more