Limit to how much Proportional tax on income tax that people individual income Flat tax have to pay after a specified threshold has been Benefits the reached wealthiest tier Unemployment Frictional caused by workers When people are in unemployment changing jobs or between jobs waiting to go to new ones A situation in which all available labor Full employment resources are being all of the workers are used in the most employed economically efficient way. Relatively intense Galloping inflation inflation, usually Period of high inflation ranging from 100 to 300% annually Gross Domestic The most complete How much money a Product (GDP) measure country makes of total output Extremely rapid or Hyperinflation Almost slang – out of control inflation out of control inflation Implicit GDP used to measure How GDP changes are deflator price changes in Gross measured Domestic Product Inflation Rise in the general Prices go up level of prices knowledge, technology, entrepreneurship, Innovation Innovation and innovation are (making new things) positioned at the at center of economic center of the model not side factor – rather than seen as independent forces Tax on good that has Tax on luxury items Luxury tax low supply and high (expensive cars, demand jewelry) Federal spending Govt spending that authorized by law Mandatory need approval that continues spending every year without the need for annual approvals of Soc Sec, vet benefits Congress Tax rate increases Tax rate that applies when income increases Marginal tax rate to the next dollar of taxable income The more you make, the more taxes you pay Federal health-care Medicare program for senior Health care for elderly citizens, regardless of income
Flat tax Proportional tax on individual income after a specified threshold has been reached Limit to how much income tax that people have to pay Benefits the wealthiest tier Frictional unemployment Unemployment caused by workers changing jobs or waiting to go to new ones When people are in between jobs Full employment A situation in which all available labor resources are being used in the most economically efficient way. all of the workers are employed Galloping inflation Relatively intense inflation, usually ranging from 100 to 300% annually Period of high inflation Gross Domestic Product (GDP) The most complete measure of total output How much money a country makes Hyperinflation Extremely rapid or out of control inflation Almost slang – inflation out of control Implicit GDP deflator used to measure price changes in Gross Domestic Product How GDP changes are measured Inflation Rise in the general level of prices Prices go up Innovation knowledge, technology, entrepreneurship, and innovation are positioned at the center of the model rather than seen as independent forces Innovation (making new things) at center of economic – not side factor Luxury tax Tax on good that has low supply and high demand Tax on luxury items (expensive cars, jewelry) Mandatory spending Federal spending authorized by law that continues without the need for annual approvals of Congress Govt spending that need approval every year Soc Sec, vet benefits Marginal tax rate Tax rate that applies to the next dollar of taxable income Tax rate increases when income increases The more you make, the more taxes you pay Medicare Federal health-care program for senior citizens, regardless of income Health care for elderly
econ_key_terms.docx