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TAX PROPORTIONALITY: The proportion of income paid in taxes at different levels of income. In some taxes the proportion of income paid in taxes increases with income in other cases it decreases. And in still other cases, it remains the same. The three basic types of taxes are proportional taxes, progressive taxes, and regressive taxes. Because almost everyone would like to pay fewer taxes (and presumably have others pay more), tax proportionality is a the center of political controversy. Higher incomes prefer regressive taxes and lower incomes prefer regressive taxes.

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Lesson 13: Aggregate Demand | Unit 5: Policies Plus Page: 21 of 22

Topic: Policies <=PAGE BACK | PAGE NEXT=>

The federal government can exert a great deal of control over the aggregate demand curve through government policies. This control of aggregate demand is called demand-management policies.
  • Government use of purchases and taxes to affect aggregate demand is termed fiscal policy.
    • Government can influence aggregate demand directly through government purchases.
    • Government can also indirectly alter aggregate demand through taxes that affect household consumption and business investment.
  • Government also changes the interest rate through monetary policy with the goal of affecting consumption and investment.

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LAW

A generally accepted, verified, proven, fundamental scientific relation. A law is a scientifically certified, thoroughly verified, cause-and-effect relation about the workings of the world. It has been tested and retested through the scientific method. The law of demand, law of increasing opportunity cost, and law of diminishing marginal utility are three fundamental (and extremely important) economic laws of nature.

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APLS

BEIGE MUNDORTLE
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Today, you are likely to spend a great deal of time browsing through a long list of dot com websites looking to buy either a how-to book on meeting people or clothing for your pet iguana. Be on the lookout for defective microphones.
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On a typical day, the United States Mint produces over $1 million worth of dimes.
"Now is the only time there is. Make your now wow, your minutes miracles, and your days pay. Your life will have been magnificently lived and invested, and when you die you will have made a difference."

-- Mark Victor Hansen

JEH
Journal of Economic History
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