Term
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Definition
| income recieved by a government from taxes |
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Term
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Definition
| tax for which percentage of income paid in taxes increases as income increases |
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Term
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Definition
| tax for which the percentage of income paid in taxes remains the same at all income levels |
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Term
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Definition
| tax for which the percentage of income paid in taxes decreases as income increases |
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Term
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Definition
| income, property good or service that is subject to a tax |
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Term
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Definition
| tax based on person's earnings |
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Term
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Definition
| tax based on company's profits |
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Term
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Definition
| tax based on real estate and other property |
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Term
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Definition
| tax based on goods or services that are sold |
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Term
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Definition
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Term
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Definition
| total income minus exemptions and deductions |
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Term
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Definition
| money taken out of your pay before you receive your paycheck |
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Term
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Definition
| program that provides benefits for people if they meet certain eligibility requirements |
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Term
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Definition
| money that government spends for major investments |
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Term
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Definition
| use of government spending and tax collection to influence the economy |
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Term
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Definition
| written document estimating the federal governments revenue and authorizing its spending for the coming year |
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Term
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Definition
| 12 month period used for budgeting purposes |
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Term
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Definition
| a bill that authorizes a specific amount of spending by the government |
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Term
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Definition
| a fiscal policy used to encourage economic growth Increased spending, tax cuts |
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Term
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Definition
| fiscal policy used to reduce economic growth, decreased spending, raise taxes |
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Term
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Definition
| free markets regulate themselves |
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Term
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Definition
| maximum output that an economy can sustain over a period of time without increasing inflation |
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Term
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Definition
| demand for goods drives the economy |
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Term
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Definition
| uses demand side theory as the basis for encouraging government action to help economy |
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Term
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Definition
| every one dollar change in fiscal policy creates a change greater than one dollar in the national income |
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Term
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Definition
| tool of fiscal policy that increases or decreases automatically depending on changes in GDP and personal income |
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Term
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Definition
| idea that the supply of goods drives the economy |
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Term
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Definition
| process by which banks record s whose account gives up money and whose account receives money when a customer writes a check |
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Term
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Definition
| company that owns more than one bank |
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Term
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Definition
| interest rate that banks charge each other for loans |
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Term
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Definition
| interest rate that the federal reserve charges commercial banks for loans |
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Term
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Definition
| money enters into circulation |
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Term
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Definition
| fraction of deposits that banks are required to keep in reserve |
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Term
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Definition
| banks reserve greater than the amount required by the federal reserve |
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Term
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Definition
| rate of interest that banks charge on short term loans to their best customers |
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