ch 14B Flashcards
stability is kept by way of the forces of supply and demand
classical economic theory
person associated with classical economic theory
Adams Smith
government intervention can combat recession and inflation
Keynesian Theory
independent of the executive branch charged with overseeing the nation’s Monetary Policy
The Federal Reserve Board
involves money supply and interest rates
Monetary Policy
how many members are on the federal reserve board, and how many terms do they serve
7 members; serve 14 year terms
refers to how much money agencies are authorized to spend
Budget Authority
for a family of 4, poverty level is approximately how much surplus?
$30,000
refer to how much money agencies are expected to spend
Budget Outlays
the difference between receipts (expected taxes and revenues and total spending)
Budget Deficit
the accumulation of past deficits, minus surpluses
federal debt
difference between debt and deficit
debt: cumulative
deficit: annual
are designed to provide a continuous flow of revenue without annual legislation
Tax policies
the higher the income the more tax paid (progressive)
income tax
hurts poor people more (regressive)
sales tax
all income groups pay the same percentage of their income in taxes
proportional (flat) tax
1 source of revenue for federal government is what?
income tax
1 source of revenue for taxes is what?
sales tax
which country was the gap between the rich and the poor wider than anywhere else in the world
South Africa
one of our five largest payments on debt was what?
Interest on the Federal Debt
payments that are made according to existing law (between 66% and 80% of total budget)
uncontrollable outlays
a rise in the general level of prices
inflation
a decline in the general level of prices
recession
an increase in the nation’s total economic output (gross domestic product)
economic growth
