Economic Policy Flashcards
entitlement programs
A government program that guarantees certain benefits to a particular group or segment of the population based on established eligibility criteria.
Progressive Tax
A tax system in which the tax rate increases as an individual’s or entity’s income increases. Higher-income earners pay a larger percentage of their income in taxes than lower-income earners.
Office of Management and Budget (OMB
The executive agency responsible for assisting the President in preparing the federal budget and overseeing its implementation in government agencies.
Congressional Budget Office (CBO)
A nonpartisan agency that provides economic and budget analysis to Congress to assist in making informed fiscal decisions.
Reaganomics
The economic policy of President Ronald Reagan in the 1980s, focused on reducing taxes, government spending, and regulation to stimulate economic growth.
regressive tax
A tax system where lower-income individuals pay a higher percentage of their income compared to higher-income individuals.
monetary policy
The process by which a central bank (in the U.S., the Federal Reserve) controls the money supply and interest rates to influence the economy.
Discount Rate
The interest rate the Federal Reserve charges banks for short-term loans.
Payroll Tax
A tax deducted from employees’ wages and employers’ payrolls to fund Social Security and Medicare.
Fiscal Policy
Government policies on taxation and spending to influence the economy.
Revenues
The income the government collects from taxes and other sources.
Excise Tax
A tax on specific goods, often included in the price of the product.
GDP (Gross Domestic Product)
The total value of all goods and services produced within a country in a given year.
Keynesianism
An economic theory by John Maynard Keynes that argues government intervention is necessary to stabilize the economy.
Means-Tested Programs
Government programs that only provide benefits to individuals who meet income or need-based requirements.
Non-Means Tested Programs
Government programs available to all eligible citizens, regardless of income.
Medicaid
A government healthcare program for low-income individuals and families
Medicare
A federal health insurance program for people 65+ and certain disabled individuals.
Reserve Requirements
The percentage of deposits that banks must keep in reserve and cannot lend out.
Welfare
Government assistance programs designed to help individuals and families in financial need.
