Day 25 Flashcards
1
Q
What effect would an increase in taxes have on price stability?
A
Production costs will increase and will be passed on in higher prices
2
Q
What effect would an increase in taxes have on full employment?
A
Lowers employment
3
Q
What effect would an increase in taxes have on economic growth?
A
Discourages work, saving, saving, investment, and innovation
4
Q
Budget ____ - When income or revenue exceeds expenditures
A
Budget surplus
5
Q
Budget ____ - When money going out exceeds money coming in
A
Budget deficit
6
Q
How do budget deficits impact the national debt
A
The deficits increase the public debt
