The actions that the Federal Reserve System takes to influence the level of real GDP and the rate of inflation in the economy
What is monetary policy
100
A central authority (usually government) makes most of the WHAT, HOW, and FOR WHOM decisions ,People have little, if any, influence over how the basic economic questions are answered
What is a command economy
100
Gross domestic product
What is the Total value of all goods and services produced in a nation over a specific period of time, usually a year
100
The more money you make, the more you are taxed, Not only the dollar amount paid but also the percentage you have to pay
What is Progressive tax
100
The central bank of the United States
What is the federal reserve
200
The total amount of money the federal governments owes
What is national debt
200
A central authority (usually government) makes most of the WHAT, HOW, and FOR WHOM decisions
People have little, if any, influence over how the basic economic questions are answered
What is a market economy
200
Shows monthly changes in the prices of goods and services by monitoring the price of things usually purchased by consumers
What is Consumer Price Index
200
People pay a higher portion of tax, the less money they make, Sales tax is a regressive tax
What is regressive tax
200
It strictly controls the money supply within the
United States
What does the federal reserve do
300
A tax for which the percentage of income paid in taxes increases as income increases – US income tax
What is progressive tax
300
Soviet Union,North Korea or Cuba
What is an example of a command economy
300
A rise in prices
What is inflation
300
Everyone pays the same amount, proportional to their income
What is Proportional tax
400
A tax for which the percentage of income paid in taxes decreases as income increases – US sales tax
What is regressive tax
400
Able to adjust to change gradually ,Individual freedom for everyone
, Lack of government interference Decentralized decision making ,Incredible variety of goods and services ,High degree of consumer satisfaction
What is an advantage of a market economy
400
Sales tax is a regressive tax, which means the less you make the bigger percentage you pay
Sales taxes hurt people of lower income more than those of higher incomeA small increase in sales tax would not affect wealthy people much
But, it would affect lower income people great
What is an affect of sales tax
400
Actions by the Federal Reserve System to expand or contract the money supply in order to affect the cost and availability of credit
What is monetary policy
500
The use of government spending and revenue collection to influence the economy
What is fiscal policy
500
Combination of both a market and a command economy, People can carry out many economic decisions and the government intervenes when needed
What is a mixed market economy
500
When overall prices go down
• Producers charge less and make less profit
What is deflation
500
Everyone pays 10%
sales tax If you make$100,000 ($10,00) or $20,000 ($2,000)
What is an example of proportional tax
500
By controlling how much money is in the economy, the government can control the free market economy