Econ test 2?

Discretionary spending

tax where percentage of income paid in tax goes down as income rises

Intervene a LITTLE in economy

Fund gov programs

a plan to increase aggregate demand and stimulate the economy can lead to more inflation

Believed in Government non-involvement economy

They use tax laws to their advantage to reduce their tax rate

Wages Tips Investment earnings NOT gas and store purchases

Increase available credit Increase money supply Decrease interest rates

Balance - expense = revenue Surplus - revenue > expenses Deficit - expenses > revenue

Mandatory- by law Discretionary- can change yearly Interest- spending on interest payments for government debt

payment for procedures that is made by an insurance company or a patient to a provider

charges a higher percentage as income rises

charges the same percentage of income, regardless of the size of income

Federal and state gov require businesses to pay these on their earnings annually

Paid on homes and land collected by state and local governments

Gas gambling cigarettes alcohol

Issued on imported goods

fiscal policy that reduces aggregate demand