Fiscal Policy: Taxes
Governments collect taxes to ensure that
citizens contribute to meeting society's needs.
Which of these best describes income tax?
direct tax
A(n) _______ policy is employed when the government chooses to run a larger deficit.
expansionary
A sales tax is a type of
indirect tax.
A(n) ________ is a tax issued by the federal government on imported goods.
tariff
What gives the US government the power to collect taxes?
the Constitution
Which best explains how contractionary policies can hamper economic growth?
They reduce disposable income.
Which terms best describe sales tax? Check all that apply.
-indirect -regressive
Which statements describe what this graph indicates about government spending? Check all that apply.
-the government needs to raise taxes or cut spending. -the government spends too much money. -the government almost always spends more than...
How is an excise tax different from a sales tax?
An excise tax applies to specific products.