civics chap 16&17 vocab
Terms
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- proportional tax
- tax takes same percentage of all income
- national debt
- totaly amount of outstanding debt for the federal government
- full employment
- when the unemployment rate is lower than a certain number established by economist
- deficit financing
- government policy of spending more money than it is able to bring in through revenues
- unemployment race
- percentage of civilian labor force that is unemployed but actively looking for work
- circular flow of income
- economic model that pictures income ad flowing continuouslybetween business and consumer
- leakages
- removal of money income from the economy
- demand-push inflation
- theory that price rise as the result of excessive buisness and customer demand
- progressive tax
- tax that takes larger percentage of higher incomes than lower incomes
- benefits-received principle
- system of taxation in which those who do not use a service don't pay taxes for it
- cost-pull inflation
- theory that the wage demands of labor unions and the excessive profit motive of large corporation push up prices
- budget deficit
- when the amount of government speknding exceeds its receipts
- regressive tax
- tax that takes a larger percentade of lower incomes than higher incomes
- equilibrium
- state of economy in which leakages and injection balance each other
- fiscal year
- year by which accounts are kept
- injection
- flow of income into the economy
- ability to pay principle
- principle of taxation in which those with higher incomes pay more taxes than those with lower incomes reguardless the service the use.
- stabilization policy
- attempts by federal government to keep the economy healthy
- fiscal policy
- federal governments use of taxation and spending policies to affect overall business activity
- budget surplus
- when the amount of government receipts is larger than its expenditure