Term
| Tight and Easy Money Policies |
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Definition
Tight Money Policy usually takes place during a time of a inflation, the federal government tighens the intrest rates to discourage spending.
Easy Money Policies are usually used during times of recessions, the federal government lowers income rates and increases companies to barrow money. Which stimulates the economy.
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· is a tax that is levied based on an individual’s income; corporations also pay income taxes as well.
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| When companies are charged for curtian items, some examples are tabacco,oil, make-up and travel |
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| A tax that is put on to the products and services that are sold to consumers. |
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| Biggest money raiser for the federal government, this tax is based off of a individuals personal possessions |
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| Taxes directly taken out of your paycheck, this tax often goes into funding social security |
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| People who inherit a large amount of money have to pay a certian amount of money |
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| fees are directed to people who benifit from a certian program or subject to regulation. An example could be to to get into a state and federal park. |
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| A tax inncentive is any amount of money that can be taken out of your taxes. Some examples or places that you can have tax incentives are if you have children you can have a tax break, if you donate money to charitable causes like good will you can have a tax break,410k 403b, Medical care fund, child care fund. You can benifit from owning a house and not renting. |
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1. “Reducing government spending would eventually result in lower taxes, since most people want to pay less tax.” Why is it so hard to achieve? What’s the hold up? What are the priorities?
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Definition
· The government would interfere with different age generations which would cause controversy. (If it reduced college education funds, which is also already over priced in America), and or the price of Medicare or Medicaid. This topic is a extremely touchy subject. The government has already tried to find other ways to avoid getting into this argument like getting rid of programs that were wasting money.
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Term
| Explain Microeconomics and Macroeconomics, and its implications. |
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Definition
Microeconomics (Small) When problems only affect a small part of the economy, such as firms, businesses. For example, what will be the effect of an increase in federal spending on consumer spending and the federal budget? Macroeconomics is the name given to such studies.
Macroeconomics (Large) - when some problems effect the economy as a whole. Example : For example, what will be the effect of an increase in federal spending on consumer spending and the federal budget? Macroeconomics is the name given to such studies. |
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| Gross Domestic policy - is the total value of goods and services, over a year. in 2001 - 10.2 trillons |
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Definition
· Economic indicators – a statistic about the economy AND its performance and predictions of the future performance.
· Gross domestic policy - measures the output of the entire country
· Personal income - total income figure received in one year by all families and individuals in the country.
· Stock market averages – tells if the economy is weak or strong.
· Unemployment rate- this figure tells us the percentage of the labor force that is unemployed at a particular time. Usually the unemployment rate is highest during times of recessions or depressions
· Durable Good – Big ticket items, things to last five or seven years or more. Appliances, cars, television, refrigerators, and other expensive items. When there is a slowdown in the economy, people won’t buy these times if they aren’t needed.
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