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What do you call people who generally favor government efforts to reduce income inequalities and to improve the positions of minorities are described as?
Liberals
What did modern conservatives in the 1980s want to reduce?
Defense spending
How will the government policy of increasing federal state or local taxes could eventually lower inflation?
if inflation is increasing that means the economy is over producing and that the economy has an inflationary gap which means the equilibrium GDP(where total spending is equal to total production) is greater then potential GDP(full employment GDP). Increasing taxes will reduce the disposable income that consumer have which will then reduce consumer expenditure(which is one of the components of GDP or aggregate demand). This will lower the equilibrium GDP to be the same as potential GDP and will lower the equilibrium for the supply and demand graph for the entire economy to a lower price level reducing price levels. Reducing government spending or decreasing transfer payments will have the same affect on the economy.
Contractionary policies are _____.?
fiscal policies, like lower spending and higher taxes, that reduce economic growth
What political party wants to reduce the size of government?
The Libertarian Party.
What were the three goals of reagonomics?
There were four: (1) reduce the growth of government spending, (2) reduce the marginal tax rates on income from both labor and capital, (3) reduce regulation, and (4) reduce inflation by controlling the growth of the money supply.
Explain how new jobs in the economy can affect the government's budget?
Budget is an estimation of the income and expenditure of a private individual, business or government over a period of time. New jobs would reduce the amount spend on transfer payments ( Spending on unproductive purposes ) such as unemployment benefits. This will reduce the government spending and lead to a surplus or a balanced budget. As new jobs are introduced, corporate profits will rise. This causes high income tax revenue to flow to the government along with high corporate income tax revenue. This is tend to increase the government revenue and lead to balanced or surplus budget.
How do government policies affect income?
Government policies and programs, such as benefit programs and the progressive income tax, reduce income inequality.
How did Wilson compensate for the reduce government income resulting from his lowering tariffs?
by creating an income tax
What influences government spending?
the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.
If the government were to reduce the tax rate on capital spending how might this influence entrepreneurial spending?
The new answer has either profanity or suspected vandalism.
How did president Clinton first budget aim to reduce the deficit?
spending cuts and tax increases
Which action best reflects Thomas Jeffersons will to reduce the size and power of the federal government?
He cut federal spending.
Why government try to reduce income tax?
Governments often try to reduce income tax to stimulate economic growth by increasing disposable income for individuals and businesses. Lower taxes can encourage consumer spending and investment, which may lead to job creation and higher overall economic activity. Additionally, tax reductions can enhance public approval and support for the government, making it politically advantageous. However, these reductions must be balanced with the need for sufficient public revenue to fund essential services and programs.
How does government spending and taxation effect the economy s production an d employment?
Government spending and taxation significantly influence economic production and employment by altering aggregate demand. Increased government spending can stimulate economic activity by funding infrastructure projects, public services, and social programs, leading to job creation and higher production levels. Conversely, higher taxes can reduce disposable income for consumers and businesses, potentially dampening spending and investment, which may negatively impact employment and overall economic growth. The balance between these two can determine the health of the economy.
What do governments do to stabilize the economy?
Progressive taxes. When economy is in a boom, income of people increase, tax collected increases, alleviates the huge rise in consumption. Tax revenue of government also increases. When economy is facing recession, unemployment results and amount of taxes government collect will reduce due to the lowered income. Government can then use the tax revenue collected previously to induce spending through the use of Govenment expenditure or welfare benefits
What are the reasons to raise the minimum wage?
Raising the minimum wage can help reduce poverty, improve the standard of living for low-income workers, and stimulate economic growth by increasing consumer spending. It can also reduce income inequality and help address the rising cost of living.
