Taxes are the primary way to provide the enormous amount of _______ to run all levels of government.
What is Money.
100
Imposes same percentage rate of taxation on everyone, regardless of income
What is a proportional tax?
100
An income that does not increase even though prices go up.
What is a fixed income?
100
In the range of 500 percent a year and above does not happen often. This would be the last stage before a total monetary collapse.
What is Hyperinflation?
200
1982-1984
What are the base years?
200
A high tax designed to raise revenue and reduce consumption of socially undesirable products such as liquor and cigarettes.
What is a sin tax?
200
Taxes are used to _____ or _____ certain types of activities.
What is encourage or discourage.
200
A rise in aggregate demand
A rapid fall in aggregate supply
What are the two causes of Inflation?
200
During inflation, people with lots of savings lose because the value of the dollar has ______ ______.
What is gone down.
300
Inflation in range of 1 to 3 percent. Not seen as a major problem.
What is Creeping Inflation?
300
A tax that can be shifted to others.
What is an indirect tax?
300
Taxes placed on a good or service can _____ the cost of production and the price of the product.
What is raise.
300
A period of stagnant economic growth and inflation.
What is Staglflation?
300
During inflation, people who lend money lose because the dollars used to pay back the debt _____ _____.
What is buy less.
400
This is approximately 365 goods and services (i.e. toothpaste, milk, lightbulbs, peanut butter, engine tune-up, etc.) used by Americans on a routine bases.
What is the Market Basket?
400
The tax on the items we buy.
What is a sales tax?
400
People with a higher income are taxed at a higher percentage rate.
What is a progressive tax?
400
If aggregate demand rises faster than producers can supply goods and services, the result is shortages, which lead to higher prices.
What is demand- pull inflation?
400
People with debt benefit because the interest rates usually _____ _____ as inflation rises.
What is go down.
500
Dividing the cost of every market basket by the base year market cost.
What is the Price Index or Consumer Price Index?
500
Those in which people with lower income pay a larger proportion or percentage of their income that people with higher incomes.
What is a regressive tax?
500
The federal taxes on our earnings.
What is an individual income tax?
500
If aggregate supply suddenly falls because of a natural disaster, while demand stays the same, there will also be shortages, which result in higher prices.
What is cost-push inflation?
500
During inflation, the value of the dollar you are repaying is _____ _____ the one you borrowed.