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MacroEcon Ch17 - Gov't Fiscal Policy

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the budget deficit or surplus in any given year adjusted for what it would have been if the economy were producing at potential GDP.

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Terms in this set (22)

the budget deficit or surplus in any given year adjusted for what it would have been if the economy were producing at potential GDP.

standardized employment budget.

a tax in which people with higher incomes pay a smaller share of their income in tax.

regressive tax.

the time it takes to determine that a recession has occurred.

recognition lag.

a tax that is a flat percentage of income earned, regardless of level of income.

proportional tax.

a tax that collects a greater share of income from those with high incomes than from those with lower incomes.

progressive tax.