TTU Economics Lesson 6 Review

Transfer payments are government expenditures where nothing is exchanged for payment (unemployment payments)

A tax that both raises money for the government and reduces undesired behaviors

Keynes believed that temporary deficit spending to save the economy was okay

In this model, GDP = C + I + G + (X – M), the letter X represents

A customs duty is a charge placed on products

Macroeconomics is the study of......

The debt ceiling (limit) is the amount of money the US can borrow to meet current spending requirements

If people meet certain eligibility requirements, they are allowed to claim benefits called

An example of a direct tax would be the

When the employer automatically sends part of your paycheck to the government

The fiscal year in the US begins

If consumer & government spending decrease, this also decreases investment spending

Keynesian economics tries to lower unemployment and increase output by

Taxes are generally recognized as effective if they have all these EXCEPT

The sources of government revenue, from largest to smallest

The national debt is the total amount of money they government borrowed for deficit spending

Mandatory spending is when Congress doesn't have to approve spending every year

If investment spending declines, people lose their jobs, which also reduces consumer spending

Increasing output and reducing unemployment without increased inflation is the goal of

programs that automatically trigger benefits if changes in the economy threaten income.

Tax cuts always lead to higher government revenues

Helping producers so that they hire more workers is the basis of

The national debt can be expressed on a per capita basis, which means

If government revenue = 3 trillion, and spending = 3.8 trillion

The largest category of US government spending

Keynes correctly deduced the government must increase spending to increase investment and consumer spending

The government is responsible for spending money on

The intersection of aggregate supply and demand is called macroeconomic equilibrium

An appropriations bill is another name for

a change in investment spending will have a magnified effect on total spending

If you use a government service, you always pay for it in taxes

The net foreign sector does not include exports and imports

In this model, GDP = C + I + G + (X – M), the letter M represents

These are all reasons why Republicans prefer supply-side economics, EXCEPT

These are examples of automatic stabilizers EXCEPT

The two principles of taxes are "benefit" and "ability-to-pay"

Macroeconomics helps us to understand the effect of the invisible hand

Taxing can raise money for the government and also

A flat tax would be very simple, but unfortunately would prevent economic incentives

Discretionary spending does not have to be approved by Congress

Medicaid is health insurance for the elderly who are on a fixed income

These are the three types of taxes EXCEPT

Criticisms of Keynesian economics do NOT include