Unit 6 Study Guide

M/C-FICA taxes, tax on elastic/inelastic products, withholding taxes from paycheck, progressive taxes, frequency of federal budget, Keynesian economics, automatic stabilizers, problems of high national debt, Laffer curve, fiscal policies during 80s, top marginal income tax rates of Presidents, Federal Reserve and monetary policy, number of Federal Reserve districts, tools Fed uses to alter money supply, effect of increase in discount rate, circumstances that would motivate Fed to tighten money supply, money multiplier, relationships between interest rates and demand for money
Matching-corporate income tax, estate tax, regressive tax, proportional tax, individual income tax, gift tax, incidence of tax, deductions, real property, Medicaid, withholding, Social Security

-appropriations bill, crowding-out effect, federal budget, fiscal policy, multiplier effect, national debt, productive capacity, T-bill, T-bond, T-note

Short answer-explain the 4 characteristics of a good tax, how do diff. states assess the amount of state income taxes they collect, what office prepares the fed budget and describe the process it follows, how does supply-side economics differ from Keynesian economics, how does the money multiplier work?