Taxes and Poverty
The United States federal income tax code requires people who earn more to pay a higher percentage of their taxes, which is known as this type of tax.
What is a progressive tax?
This is the formula for GDP.
What is C + I + G + NX?
This is the number of people who are looking for work but do not have a job divided the total number of people available/willing to work.
What is the unemployment rate?
This is the cyclical growth and decline of an economy created by market forces.
What is the business cycle?
This is the central bank of the United States, of which the board is made of of 7 appointed officials.
What is the Federal Reserve Bank?
In order to pay for a new bridge, the government requires all people who drive over the bridge to pay $10 each time, creating this type of tax system.
What is a regressive tax?
When considering the formulary C+I+G+NX, the greatest portion (about 70%) of the GDP in the US is this.
What is consumption?
This is all people who are working or actively (in the last 4 weeks) looking for work.
What is the labor force?
When the economic indicators are positive and the economy is thriving, people tend to do this with their money.
What is spend/invest it?
The Federal Reserve Bank has several tools to add or subtract from the amount of money circulating in the economy. The exercise of these tools is known as this type of policy.
What is monetary policy?
Colorado charges 8% on all purchased goods. This sales tax is this type of tax.
What is a proportional (flat) tax?
When considering the part of GDP called "net exports," this category is subtracted from the overall GDP.
What are imports?
This is the measurement of the average increase of prices over time, and it is calculated using the Consumer Price Index.
What is inflation?
A recession usually lasts about 6 months. This is what we would called a prolonged, deep recession.
What is a depression?
If the Fed wanted to contract the economy through open-market operations, they could do this.
What is sell bonds to investors?
This type of tax is the most disproportionately harmful to those in poverty.
What is a regressive tax?
GDP can give a picture of overall economic productivity, but to better understand the standard of living in a country, economists might use this measurement that divides the GDP by the total population.
What is GDP per capita?
This is a situation when inflation occurs at 50% or more per month.
What is hyperinflation?
High unemployment and decreasing GDP indicates that the economy is at this point in the business cycle.
What is a recession/trough?
If the Fed wants to expand the economy through the Reserve Rate, they could do this to the rate, which would allow banks to keep less cash on hand and thus invest more and give more loans.
What is lower the Reserve Rate?
The number of people who fall below the poverty threshold divided by the total population (x100) is this.
What is the poverty rate?
When it comes to calculating GDP, intermediate goods, stocks, and social security checks all have this in common.
What is they do not count?
If your salary stays the same, inflation does this to your purchasing power.
What is diminishes/decreases it?
Rising inflation, low unemployment, and rising GDP would occur during this part of the business cycle.
What is recovery/expansion?
The Discount Rate is an interest rate (specifically the interest rate for banks to borrow money from the Fed). In order to contract the economy, the Fed could do this to the Discount Rate.
What is raise the Discount Rate?