Government policy that attempts to manage the economy by controlling taxing and spending.

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

fiscal or monetary; attempt to slow the economy down

fiscal or monetary; attempt to speed up the economy

raise in interest rates, lower the money supply, raise the discount rate, raise the reserve requirement

Decreased government spending, higher taxes, more regulations, decreased transfer payments

lower the interest rates, raise the money supply, lower the discount rate, lower the reserve requirement

Increased government spending, lower taxes, fewer regulations, increased transfer payments

spending category about which government planners can make choices

Required govt spending by permanent laws

A tax for which the percentage of income paid in taxes increases as income increases

A tax for which the percentage of income paid in taxes decreases as income increases

A tax in which the average tax rate is the same at all income levels.