11 terms

Chapter 4: Economic Issues- Taxing, Spending, and Budgeting

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
occurs when government expenditures exceed revenues in a given fiscal year
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
a tax system where there are tax brackets set and the more money made puts you in a higher % bracket
Tax has greater impact on lower incomes
Flat Tax
Everyone's income group pays the same income tax