Show:
GDP
Taxes & Gov't Spending
Fiscal Policy
Monetary Policy
Hodgepodge
100
A system that collects macroeconomic statistics on production, income, investment, and savings
What is the national income accounting system?
100
A required payment to a local, state, or national government
What is a tax?
100
Fiscal policy
What is the use of government spending and revenue collection to influence the economy
100
Member banks, 12 Districts, 7 Board of Governors
What is the structure of the Federal Reserve System?
100
Keynesian economics
What is a form of demand-side economics that encourages government action to increase or decrease demand and output?
200
Expenditure & Income Approach
What are the two ways to calculate GDP?
200
Proportional; Progressive; & Regressive Taxes (Explain each)
How are the tax structures? Proportional - percentage for all tax levels are the same Progressive - tax percentage increases as income rises Regressive - tax percentage decreases as income rises
200
Fiscal policies, like lower spending and higher taxes, that reduce economic growth
What are contractionary policies?
200
Serving government; Serving member banks; Regulating the Banking System; Regulating the Money Supply
What are the functions of the Federal Reserve System?
200
Rate the Federal Reserve charges for loans to commercial banks
What is the discount rate?
300
Business Investment; Interest Rates & Credit; Consumer Expectations; & External Shock
What are the four main factors that affect the business cycle?
300
Simplicity; Efficiency; Certainty; Equity
What are the characteristics of a good tax?
300
The idea that every one dollar of government spending creates more than one dollar in economic activity (Analogy - Pay It Forward)
What is the multiplier effect?
300
The buying and selling of government securities to alter the supply of money
What is the open market operations?
300
Social welfare program that people are "entitled to" if they meet certain eligibility requirements (i.e. Medicaid, Social Security, SSI)
What are entitlements?
400
Capital Deepening
What is the process of increasing the amount of capital per worker?
400
FICA (Federal Insurance Contribution Act)
What are the taxes that fund Social Security & Medicare?
400
A government program that changes automatically depending on GDP and a person's income
What are automatic stabilziers?
400
Monetary policy that reduces the money supply
What is the tight money policy?
400
A tax on the estate, or total value of the money and property, of a person who has died
What is an estate tax?
500
Technical Progress
What is an increase in efficiency gained by producing more output without using more inputs?
500
Not subject to taxes
What is meant by tax exempt?
500
The loss of funds for private investment due to government borrowing
What is the crowding out effect?
500
Delay in implementing monetary policy
What is inside lag?
500
The income level below which income is insufficient to support a family or household
What is the poverty threshold?