"In Theory"
These two men helped create "Trickle Down Economics," lowering taxes that the wealthiest individuals pay.
This nickname is what the Federal Reserve is called, for short.
The Fed
This type of tax system charges a higher rate to individuals who make more income.
What is a progressive tax system?
These are the main two ways that governments may raise revenue to fund themselves.
What are taxes and issuing government bonds (taking on debt)?
When government spending exceeds revenue, it is known as this.
What is a deficit?
This Economic Theorist would be in favor of increasing spending during a recession.
Who is John Maynard Keynes?
The Federal Reserve's primary function is to serve as this.
What is the central bank for the United States.
This type of tax pays for Medicare and Social Security
What is payroll tax?
When government revenue exceeds spending, it is known as this.
What is a surplus?
Arthur Laffer was famous for _______, which helped his theory gain traction in the economics community.
What is Laffer's Curve?
The Fed has a dual mandate for these two primary objectives.
What is price stability and employment?
This type of tax system requires that all individuals pay the same percentage of their income, regardless of how much they make.
What is a "flat" tax (or proportional)?
This economist from Unit 4, would have been strongly in favor of federal governments using fiscal policy to maintain long term stability.
Who is Keynes?
These represent debt for the government that must be paid back with interest.
What are government bonds?
These two economists would have generally agreed that the role of government in the economy should be minimal.
Who are F.A. Hayek and Adam Smith?
These two economic policy tools are exclusively controlled by the Fed.
What are interest rates and the money supply?
A sales tax is a form of tax that falls under this type of tax structure.
What is a regressive tax?
To end recessions, governments typically use this type of fiscal policy.
What is expansionary?
What are municipal?
This economic school of thought emphasizes the importance of tax cuts to stimulate economic growth.
What is Supply-side? (Laffer)
The Fed would likely take this action to help address high levels of inflation.
What is raising interest rates?
A regressive tax means that this economic class is punished more, relatively, compared to other classes.
What is the lower class?
To slow down excessive amounts of growth and prevent possible future recessions, governments typically utilize this type of fiscal policy.
What is contractionary?
The U.S. national debt is currently up to this amount (closest to the correct answer wins)
$38.065 Trillion