economic philosophies
philosophie that focuses on economic growth by reducing taxes and regulations on businesses and individuals. they believe in lowering taxes, increase investments, production, job creation which raise government revenue
supply side economics
what is the monetary policy controlled by
controlled by the central bank (federal reserve)
money spend on public services,infrastructure, defense, social programs
government spending
provides health coverage for low income individuals and families. jointly funded by federal and state governments.
medicaid.
tax rate increases as income increases. example, us federal income tax systems
progressive tax
focuses on using government spending and fiscal policy to manage economic cycles. during recession, increased government spending can stimulate demand and pull the economy out of a downturn. (causes the government to go into debt)
keynesian economics
manages money supply and interest rates to control inflation and stabilize the economy
monetary policy
total government outlays, including mandatory (social security) and discretionary spending. money government has to spend
expenditures
health insurance for people 65 and older and some people with disabilities. funded primarily by payroll taxes.
medicare
the tax rate is the same for all income levels. everyone pays the same percentage of their income
proportional tax (flat tax)
combines elements of both market and government control. most modern economics, including the us, are mixed economies-private businesses operate alongside government regulations and programs.
mixed economy
what it the fiscal policy controlled by
controlled by the government (congress and the president)
income the government collects, primarily through taxes
revenue
provides low cost health coverage to children in families that earn too much t qualify for medicare but cant afford private insurance.
chip
the tax rate decreases as income decreases. example, sales tax, where lower income people pay a higher percentage of their income
regressive tax
due to inflation taxes are lowered to bring economy back to how it was
supplyside economics
uses government spending and taxation to influence economic activity
fiscal policy
purchasing machinery, paying salaries, buying business vehicles are examples of
expenditures
ms.Kelley loses her jobs but shes pregnant with twins. her income is too high for medicaid but she cant afford private insurance for her children. what insurance will most benefit ms Kelley?
CHIP
a tax credit for low to moderate income working individuals and families. reduces the amount of tax owed and may provides refund.
EITC(earned income tax credit)
deep economic recession or depression characterizes by high unemployment and a significant lack of consumer business command
keynesian economics
when economy needs stability either to fight a recession or to cool down inflation
fiscal policy
money received from tax, fees, individual income tax
Ms. Kelly grows old shes boutta hit the bucket. she is provided with this type of insurance through payroll taxation
medicare
Ms.Kelley food taxing 50% more on poor students rather than rich students. (she must be hungry)
regressive tax