The Government and the Economy Review

Front

Which fiscal policy is typically used during a recession?

Back

Expansionary fiscal policy

Front

What is the purpose of contractionary fiscal policy in terms of economic stability?

Back

To stabilize economic growth

Front

Reducing government spending is a method associated with which fiscal policy?

Back

Contractionary fiscal policy

Front

In a progressive tax system, what happens to the tax burden as income rises?

Back

It increases

Front

What is a key characteristic of a progressive tax system?

Back

It is equitable.

Front

Which group benefits from a more equitable tax system in a progressive tax model?

Back

All income groups

Front

What is a key characteristic of a proportional (flat) tax?

Back

Same tax rate applied to all individuals regardless of income

Front

What is the main goal of supply-side economics?

Back

Stimulate production and economic growth

Front

Which term is often used to describe the belief that benefits for the wealthy will 'trickle down' to everyone else?

Back

Trickle-down effect

Front

Supply-side economics is primarily focused on which side of the market?

Back

Supply