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November 30, 2023 

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TAX RATE: The percent of the tax base that is collected as tax. The tax rate can be a flat, or proportional, rate, meaning it is a constant percent of the tax base regardless of the size or value of the base. Or the tax rate can change as the tax base changes. If the tax rate increases, the tax is progressive. If the tax rate decreases, the tax is regressive.

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CONTRACTIONARY FISCAL POLICY: A form of stabilization policy consisting of a decrease in government spending and/or an increase in taxes. This policy is designed to avoid or correct the problems associated with a business-cycle expansion that gets out of hand and causes inflation.

     See also | stabilization policies | business cycle | fiscal policy | expansion | inflation | government purchases | taxes | transfer payments |


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CONTRACTIONARY FISCAL POLICY, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: November 30, 2023].


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MARGINAL REVENUE CURVE, MONOPOLY

A curve that graphically represents the relation between the marginal revenue received by a monopoly for selling its output and the quantity of output sold. Because a monopoly is a price maker and faces a negatively-sloped demand curve, its marginal revenue curve is also negatively sloped and lies below its average revenue (and demand) curve. A monopoly maximizes profit by producing the quantity of output found at the intersection of the marginal revenue curve and marginal cost curve.

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