ECONOMICS 12/9

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Across
  1. 2. when the government receives more money in taxes than it spends in a year
  2. 3. the theory that rational private households might shift their saving to offset government saving or borrowing
  3. 5. fiscal policy that increases the level of aggregate demand, either through increases in government spending or cuts in taxes
  4. 7. a tax imposed on corporate profits
  5. 9. deficits that occur when a country is running both a trade and a budget deficit
  6. 10. a tax based on the pay received from employers; the taxes provide funds for Social Security and Medicare
  7. 12. a tax on people who pass assets to the next generation—either after death or during life in the form of gifts
  8. 17. the time it takes for the funds relating to fiscal policy to be dispersed to the appropriate agencies to implement the programs
  9. 21. fiscal policy that decreases the level of aggregate demand, either through cuts in government spending or increases in taxes
  10. 23. or the tax that must be paid on all yearly income
  11. 24. the time it takes to get a fiscal policy bill passed
  12. 25. a program for early childhood education directed at families with limited educational and financial resources.
Down
  1. 1. the government passes a new law that explicitly changes overall tax or spending levels with the intent of influencing the level of overall economic activity
  2. 4. a tax on a specific good—on gasoline, tobacco, and alcohol
  3. 6. when government spending and taxes are equal
  4. 8. the budget deficit or surplus in any given year adjusted for what it would have been if the economy were producing at potential GDP
  5. 11. federal spending and borrowing causes interest rates to rise and business investment to fall
  6. 13. tax and spending rules that have the effect of slowing down the rate of decrease in aggregate demand when the economy slows down and restraining aggregate demand when the economy speeds up, without any additional change in legislation
  7. 14. a tax that collects a greater share of income from those with high incomes than from those with lower incomes
  8. 15. when the federal government spends more money than it receives in taxes in a given year
  9. 16. the time it takes to determine that a recession has occurred
  10. 18. a tax based on the income, of all forms, received by individuals
  11. 19. the total accumulated amount the government has borrowed, over time, and not yet paid back
  12. 20. a tax that is a flat percentage of income earned, regardless of level of income
  13. 22. a tax in which people with higher incomes pay a smaller share of their income in tax