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11 Cards in this Set

  • Front
  • Back
Why is Economic Policy most important and critical to other government functions?
People don't understand fiscal policy and don't associate tax cuts with attempts to stimulate economy
What is Economic policy?
the development of particular programs and policies that are intended to effect economic conditions in the US
What is Substansive Policy?
Outlines what govt department intends to do through stated plans of action. Has high goals, statements of value, has timeframe and includes economic policy.
Effects of unemployment
1. The more people who are unemployed the fewer people are paying income or Social Security taxes, so less revenue enters the Treasury to pay for gov’t programs.
2. The unemployed may be eligible for a number of gov’t programs geared toward low-income people, such as Medicaid, food stamps, and welfare payments. So the gov’t pays out more money when unemployment rises.
Balance of Trade
an economic goal related to the role of the U.S. in an international economy; examines the value of a nation’s exports compared to its imports.
Fiscal Policy
The President and Congress’ power of taxing and spending tools used to influence the economy.
Monetary Policy
tool used by the Federal Reserve Board to influence economic policy goals; it attempts to control economic fluctuations by controlling the amount of dollars in circulation, a.k.a. the money supply.
Goals of Social Regulation
not usually based on economics; rather, they are enacted to protect society from unsafe business practices and products.
Regressive Tax
applies the same rate of taxation to all individuals regardless of their income or socioeconomic status.
Progressive Tax
based on the philosophy that higher earners should pay higher taxes both in terms of dollars and as a percentage of income.
Responsibility of The Office of Management and Budget (OMB)
it’s a presidential line agency that is primarily responsible for reviewing all agency budgets and ensuring that they conform to the administration’s policies and agenda.