Fiscal Policy
The number of branches of government that enact Fiscal Policy
What is two?
Type of tax levied at the same percentage for people at all income levels
What is proportional?
This economist introduced the radical new concept of deficit spending during the Great Depression
Who is John Maynard Keynes?
If the spending multipier is 10 the tax multiplier is ______
What is -9?
The term used to describe an increase in the price level and unemployment at the same time
What is stagflation?
The two tools of ficscal policy during a recessionary gap are to __________ and/or ________.
What is increase govenment spending and/or decrease taxes?
The maintenance of a town’s sewer and water systems is mainly paid for by ___________ taxes
What is local taxes?
This school of economic thought believes that given enough time the economy will 'fix itself'.
What is Classical Economics?
If people spend 80% of their incomes the spending multiplier is _________
What is 5?
The current US Debt is approximately ___________
What is $34 trillion dollars?
Type of Fiscal Policy used to combat inflation
What is contractionary?
States recognizing the economic importance of having a skilled workforce is one reason they invest taxpayer dollars in __________ _________.
What is public education?
The Supply-side economist are in favor of ______ ______ to help a sluggish economy.
What are tax cuts?
The numerical value for the investment and government spending multiplier increases as the value of the marginal propensity to save _________
What is decreases?
According to John Maynard Keynes, " In the long-run, we are all _________"
What is dead?
More families qualifying for welfare assistance as a result of a recession is an example of __________ _____________.
What is an automatic stabilizer?
Social Security, Medicare, unemployment insurance, and _________ are all mandatory payments of the federal budget.
What is medicaid?
Economist who oppose Keynes argue that when the government runs a budget deficit, __________ __________can get “crowded out” in the process
What is business investment?
If the government followed the Supply-side school of thought, taxes would need to be cut by a ________ amount in order to have the same effect as an increase in government spending
What is larger?
The largest source of financial capital for businesses to investment with comes from ___________
What is individual savings put in the bank?
The government uses the _________ ________ to implement Fiscal Policy
What is the federal budget?
The regressive tax takes a ____________ percentage of income from poorer people than from wealthier people
What is higher?
When the economy is in a recessionary gap Classical economist believe the economy will return to full employment when resource prices fall causing the aggregate _________ to shift to the __________.
What is supply; right?
Assuming an MPC of .75 and a recessionary gap of $200 billion, the government would need to _________ their spending by _________ to bring the economy back to full employment.
What is increase; 50 billion?
What are to achieve full employment, price stability, and economic growth?