Economics

The flashcards below were created by user Drizzle on FreezingBlue Flashcards.

  1. Fiscal Policy
    The use of government purchases, transfer payments, taxes, and borrowing to influence economy-wide variables such as inflation, employment, and economic growth.
  2. Monetary Policy
    Regulation of the money supply to influence economy-wide variables such as inflation, employment, and economic growth.
  3. Ability-to-pay tax principle
    Those with a greater ability to pay, such as those earning higher incomes or those owning more property, should pay more taxes.
  4. Benefits-received tax principle
    Those who get more benefits from the government program should pay more taxes.
  5. Tax incidence
    Indicates who actually bears the burden of the tax
  6. Proportional Taxation
    The tax as a percentage of income remains constant as income increases; also called a flat tax
Author:
Drizzle
ID:
264863
Card Set:
Economics
Updated:
2014-03-05 18:28:03
Tags:
Economics Macro McEACHERN Accumulative
Folders:

Description:
All terms
Show Answers: