Established in 1913 as a central bank and monetary authority of the United States.
What is the Federal Reserve System (the Fed)?
100
Payments people are required to pay to governments to fund services like schools, police, and defense.
What are taxes?
100
The means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.
What is fiscal policy?
100
A medium regulated by the government used in all exchanges.
What is money?
100
This is caused by the recession phase of the business cycle.
What is cyclical unemployment?
200
Cash that banks have on hand in their vaults or on deposit with the Federal Reserve
What are reserves?
200
The three basic types of taxes that can determine how much you pay depending on how much you make.
What are progressive, regressive, and proportional (flat) taxes?
200
The current estimate for this is about 4%, which is basically a level that most governments in the US should strive for.
What is natural rate of unemployment?
200
A written order instructing the bank to pay someone from an amount deposited.
What is a check?
200
An economy's maximum sustainable output for the long run.
What is potential output?
300
Depository institutions that make loans primarily to businesses
What are commercial banks?
300
A tax paid for by employers and provides compensation for workers laid off through no fault of their own and are actively looking for work.
What is an unemployment tax?
300
In the 1970s the United States was in a condition of slow economic growth and high unemployment, which is also known as this.
What is stagflation?
300
Money not redeemable for anything of intrinsic value is this
What is fiat money?
300
This happens when there is a decrease in aggregate supply.
What is cost-push inflation?
400
A plan for government that outlays revenues for a specified period, usually a year.
What is a government budget?
400
What type of tax is income tax in the United States? What about social security?
What are progressive and regressive respectively?
400
This theory developed by John Maynard Keynes in the 1930s explained that full government spending and low taxes would bring a government out of a depression through the law of demand.
What is Keynesian Theory?
400
The difference between the value of money and the cost to produce it; the revenue earned from producing money.
What is seigniorage?
400
President Wilson signed these two entities into law in 1913 in order to help the government regulate money.
What are the Fed and the IRS?
500
Interest rate that the Fed charges banks that borrow reserves
What is discount rate?
500
Tax on the sale or production of a good, often used to discourage use of the item, such as alcohol or cigarettes.
What is an Excise tax (Luxuary or Sin)?
500
An economic principle that private investment increases as government deficit increases is known as this.
What is crowding in?
500
Economists use this definition of money, which includes all currency, demand deposits, checking accounts, and NOWs, to calculate the amount of money in circulation.
What is M1?
500
Georgia resides in this district within the Federal Reserve System.