Fiscal Policy 1
The two fiscal policy measures the federal government uses to influence the macroeconomy.
What are taxing and public spending?
The type of fiscal policy whose intent is to get the economy to grow and/or reduce unemployment.
What is Expansionary Fiscal Policy?
In this tax structure, a person's percentage of tax remains constant as income increases. It is also known as a flat tax.
What is a Proportional Tax?
Fluctuations reflecting the rise and fall of economic activity relative to the long-term growth trend of the economy.
What is the Business Cycle?
The economic behavior of a whole economy (as opposed to one sector of an economy)---especially the national economy.
What is <the> Macroeconomy?
Clean air and safe drinking water are examples of:
What is a public good?
Two factors that promote stability in the US Economy. Hint: What are Low ___ and Low ____.
What are low inflation and low unemployment.
In this tax structure, the tax as a percentage of income decreases as income increases.
What is a regressive tax?
This is a decline in total production lasting at least two consecutive quarters, or at least six months
What is a recession?
The ideal rate of growth for GDP.
What is 2 to 3 percent?
A cost or benefit to a third party who did not agree to it. (For instance, air pollution)
What is an externality?
The direction the demand curve shifts in Demand Pull inflation.
What is out (or to the right).
In this tax structure, the tax as a percentage of income increases as income increases.
What is Progressive Tax?
A severe contraction in the economy, indicated by a sharp reduction in the nation’s total production lasting a few years and accompanied by high unemployment.
What is a depression?
A period with rising inflation and high unemployment?
What is Stagflation?
The US agency whose task is to ensure competition by enforcing anti-trust laws, preventing harmful mergers and stop unfair business practices.
What (or Who) is the FTC? (Federal Trade Commission)
In this type of inflation, the Aggregate Supply Curve shifts to the left.
What is Cost-Push Inflation?
Sales Tax is an example of this type of tax.
What is a Regressive Tax?
Expansion, Peak, Contraction and Trough are:
What are the four phases of the Business Cycle?
This type of unemployment occurs when job seekers do not have the skills needed to work. It often occurs when technology advances.
What is Structural Unemployment?
The three main US Economic Goals include
What is 1) providing public goods, 2) ensuring competition and 3) dealing with externalities and promoting economic stability, security and growth.
Describe what happens to the value of the dollar when inflation increases.
What is reduce the value of the dollar?
This Progressive Tax is used to fund education, transportation, emergency, parks, recreation and libraries.
What is Property Tax?
Name the big three economic indicators.
What are: 1) Inflation Rate 2) Unemployment Rate 3) GDP
Formula to calculate Unemployment Rate.
What is: Number of Unemployed (people LOOKING for work)/Number in the Labor Force