Chapter 4: Economic Issues- Taxing, Spending, and Budgeting
Order by
11 terms
Terms | Definitions |
|---|---|
 Mixed Economy | government and economy are mixed |
| Monetary Policy | A macroeconomic tool that seeks to use the supply of money in circulation to impact interest rates and inflation |
| Federal Reserve Board | The central baking authority in the US and the principal agent of monetary policy |
| Fiscal Policy | Tax policy, spending policy and debt policy used as tools to stabilize the economy |
| Deficit | occurs when government expenditures exceed revenues in a given fiscal year |
| Debt | accumulation over time of annual deficits |
| Demand Side Economics | Traditional, Keynesian economic theory that the economy is driven primarily by demand for goods and services |
| Supply Side Economics | Macroeconomic approach that emphasizes tax cuts and tax incentives to business in order to promote economic growth |
| Progressive | a tax system where there are tax brackets set and the more money made puts you in a higher % bracket |
| Regressive | Tax has greater impact on lower incomes |
| Flat Tax | Everyone's income group pays the same income tax |
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