Download Economics Review Sheet (Test 2) Taxes, Fiscal and Monetary Policy

Economics Review Sheet (Test 2)
Taxes, Fiscal and Monetary Policy
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Progressive tax…define and examples
Regressive tax…define and examples
Proportional tax…define and examples
Excise Tax…define and examples
Pros and cons of Fair Tax / Flat tax
Characteristics of a good tax
Estate tax
Gift tax
Tariff
Benefits Received Principle
Ability-to-pay Principle
Incidence of a tax
Taxes and elasticity of demand
National Income tax
Medicare Tax
2 threats to our economy
Fiscal Policy
2 expansionary Fiscal Policies
2 contractionary Fiscal Policies
Fiscal year
One limit of fiscal policy
Who is Ben Bernanke and why is he important
How can a tax cut lead to higher GDP
What happens during an expansionary / contractionary period (business cycle)
Difference between Keynesian and classical economics
Fiscal Policy regarding the Great Depression
Balanced Budget
Difference b/w budget deficit and national debt
Problems with National Debt
Hyperinflation
How Government subsidies affect supply
How a change in supply or demand can affect EQ price
Monetary Policy
Date FED created / restructured
Why FED created
Date of FDIC
Bank Runs and why
Structure of the FED (Board of Gov, FOMC, District Banks, Member Banks)
Various Functions of the FED
3 Monetary tools used to Grow the economy
3 Monetary tools used to Slow the economy
Tool the FED uses most often
Required Reserve Rate formula (money creation)
Discount Rate
Federal Funds Rate
Government Securities