Vocabulary
Tax levied on personal income
What is Income Tax?
Group responsible for Fiscal Policy
What is the Government?
Group responsible for Monetary Policy
What is the Fed?
A monetary contribution to the government
What are Taxes?
Group that receives personal income
What is Households?
Fixed tax rate
What is Proportional Tax?
Aimed at stimulating/growing the economy
What is Expansionary Fiscal Policy?
Interest rates raised to reduce spending
What is Contractionary Monetary Policy?
Everyone taxed at the same percentage of income
What is Flat/Proportional Tax?
Group responsible for making goods and services
What is Businesses?
Government makes more money on taxes than it spends
What is Budget Surplus?
Aimed at reducing economic growth
What is Contractionary Fiscal Policy?
Increasing money supply and lowering interest rates to encourage borrowing and spending
What is Expansionary Monetary Policy?
Direct tax levied on the income of corporations
What is Corporate Tax?
How business and households pay the government
What is Taxes?
Branch of economics that examines the economy as a whole
What is Macroeconomics?
Raising taxes, cutting spending, or both
What is Tools of Contractionary Policy?
Fed Reserve policies during Covid to stimulate the economy
What is Expansionary Monetary Policy?
Type of tax system in the U.S.
What is Progressive Tax?
Market in which households purchase goods and services from
What is Product Market?
Minimum amount of money a bank must hold in liquid assets
What is Reserve Requirement?
Inflation
What is Potential Effects of Expansionary Fiscal Policy?
What is Goals of Monetary Policy?
Tax levied on goods and service; ex) Sales Tax
What is Indirect Tax?
The 7 responsible parties that make-up the Macroeconomic Flow Diagram
What is Households, Businesses, The Government, Banks, Product Market, Factor Market, and Trade Partners?