Progressive, Regressive, and Proportional Taxes

How does the Federal Government fix problems?

• Monetary Policy

• Fiscal Policy

• Foreign Policy

• Trade Policy

What are the Federal Government's tools of fiscal policy?

• Tax Policies and Monetary Policies

• Government Spending and Healthcare Policies

• Tax Policies and Government Spending

• Trade Policies and Environmental Policies

What is the goal of Fiscal Policy?

• To reduce government spending

• To increase tax policies

• To create policies that will stabilize the economy

• To influence the global market

What does AD stand for in the context of economics?

• Average Demand

• Aggregate Demand

• Annual Demand

• Adjusted Demand

What is the purpose of expansionary fiscal policy?

• To slow the economy down during rapid expansion

• To stimulate the economy during a contractionary period

• To increase taxes and reduce spending

• To create inflationary gaps in the economy

What does contractionary fiscal policy aim to do?

• Increase government spending to stimulate the economy

• Reduce tax rates on individuals and corporations

• Slow the economy down during rapid expansion

• Shift the aggregate demand to the right

What effect does reducing tax rates on individuals and corporations have according to expansionary fiscal policy?

• It slows down spending

• It increases taxes

• It promotes spending

• It decreases government spending

Who is quoted as saying, "The only things certain in life are death and taxes."?

• Albert Einstein

• Jesus

• Benjamin Franklin

• Unknown

What is an excise tax?

• A tax levied on income

• A tax levied on certain goods and commodities produced or sold within a country and on licenses granted for certain activities

• A tax levied on all retail sales

• A tax levied on property ownership

What type of tax system has a percentage of income paid in taxes that remains the same for all income levels?

• Progressive Tax

• Regressive Tax

• Proportional Tax

• None of the above