Friday, April 6, 2018

Unit 3

unit 3

Fiscal policy- encourages full employment, economic, as well price stability
-government controls fiscal policy
changes in the expenditures of tax revenues of the federal govt. in Texas govt. could increase or -decrease taxes
-spending government
-it increases

Budget balance is equal to expenditure

Budget defecit revenues greater than expenditure
Bufget surlpus less than expenditure
Govt debt sum of all expenditures surplus

Two types of fiscal policy: expansionary and contractionary
 -Contractionart fiscal policy- helps contil inflation
 -Decreases govt. spending
 -Expansionary fiscal policy- helps recession 
- increase govt. spending,decreases taxes

Automatic &stabilizers
things that help the budget during a recession by increasing govt spending and etTax System
Types of taxes
 -progressive- the gdp rises and the tax rate
-Regressive- avg tax stays constant  
-Proportional-avg tax falls and gdp 
Type of transfer payments:
  • Welfare checks
  • Food stamps 
  • Unemployment checks 
  • Corporate dividends 
  • Social security 
  • Veterans benefits 


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