Lecture Notes on Inequality, Poverty, and Macroeconomic Policies

Flashcards covering key concepts related to inequality, poverty, and macroeconomic policies from lecture notes.

Factors contributing to __.

Different levels of human capital, resource ownership, discrimination, unequal status and power, government tax and benefits policies, globalization, market-based supply-side policies, high abnormal profits of firms with market power, and pay of executive positions.

__ and poverty.

Unemployment, age, taxation, and geography contribute to __.

__ policies.

Stabilizes business cycle fluctuations.

Direct __.

Paid directly by the taxpayer, such as personal income taxes and corporate taxes.

__-side policies.

Focuses on production and shifting Aggregate Supply to potential output and economic growth.

Indirect __.

Taxes on spending, such as general expenditure (sales) taxes, excise taxes, and customs duties.

Role of __ bank.

Bank to government and commercial banks, regulating commercial banks, and monetary policy.

Goals of __ policy.

Stable rate of inflation, low unemployment, business cycle fluctuations, stability for long-term growth, and external balance.

__ rate policy.

Changing interest rates, access to credit, minimum reserve requirements, minimum lending rate, and quantitative easing.

Disadvantages of __ policy.

Possible ineffectiveness in recession, banks may be fearful of lending, low consumer and producer confidence, limited political constraints, and conflict of objectives.

Other __.

Indirect taxes are regressive, marginal tax, investment in human capital, transfer payments, targeted government spending, universal basic income, policies to discrimination, and government intervention in markets.

__ effect.

A change in expenditure has a chain reaction of further expenditures.

__ shows.

Shows that whenever there is a change in aggregate demand (AD), there is likely to be a multiplied effect on real GDP (rGDP).

Marginal propensity to __ (MPC).

The fraction of additional income that households spend on consumption of domestically produced goods.

__ spending.

Spending not caused by income.