Fiscal
An example of an Excise Tax
Cigarettes, Alcohol, Gasoline
When more money is spent than is taken in--What does this create
Budget Deficit
The federal government's use of taxing and spending to keep the economy stable
Fiscal Policy
What type of Tax is a Property Tax?
Flat Tax or Proportional Tax
Spending Category that includes Social Security, Medicare, and Interest on the Debt
Mandatory Spending
Federal Spending equal to federal revenue
balanced budget
What type of Tax is a Sales Tax?
Regressive Tax
A 12 month period that is used for financial calculations
Fiscal Year
The Total amount of money owed by the Federal Government
National Debt
What type of Tax is Income Tax?
Progressive Tax
Fiscal procedures that try to increase economic output
Expansionary Policies- less taxes, More Government Spending
What is the Problem when the Government uses Expansionary Fiscal Policy
High Unemployment
How does the Government get most of its Income
Personal Income tax, not Corporate Income Tax
Fiscal procedures that try to decrease economic output
Contractionary Policies, Less Government Spending, Increase in Taxes
What is the Problem when the Government uses Contractionary Fiscal Policy
High Inflation