Meow meow

Aggregate demand ____ with ____,____,____

• Increases

• Tax Cuts

• Govt. Spending

• Interest rate cuts

____ is caused by a spike in demand or a decrease in ____

• Inflation

• Supply

In 2020 ____ were disrupted because of the ____

• supply chain

• pandemic

Everyone who works pays the ____ tax. All pay the same ____ rate.

• Payroll

• 15.2%

The ____ tax is progressive and rich pay higher rates.

• Income

____ spending is _____, etc.

• Mandatory

• Social Security

TCIA of 2017 ____ taxes primarily on ____.

• Cut

• Rich

____ sets interest rates. This is ____ policy.

• Federal Reserve Board

• Monetary

The fed chair is ____ he is a leading policy maker

Jerome Powell

____ interest rates makes it easier to ____ and ____ should grow

• Reducing

• Borrow

• GDP these are dry use

Texas has ____ budgets and budget ____. It will pass a ____ budget this session.

• Biannual

• Surpluses

• Two-year

____ corrects market problems like ____ and ____

• Regulation

• Imperfect information

• Oligopoly

____ was created in 1891 to ____ but now ____

• Texas railroad commission

• Set rail rates

• Regulates oil

Regulation can be ____ or ____

• Structural

• Social

Know how each type is ____

• Different

What are the three forms of law?

• Constitutional: The foundation of all law

• Statutory: Laws passed by the legislature

• Rules/regulations/executive orders: Most specific and detailed; based on statutory law

What is regulation?

Designed to correct problems that arise in the free market.

When do markets work best?

• Consumers have perfect information

• Consumers have many options

What two problems does regulation address.

• Imperfect competition: consumers lack info and choices for buying goods and services

• Negative externalities: Factory dumps byproducts into the air

Examples of regulation

• Finance

• Consumer protection

• agriculture

• environment

• occupation

• workplace safety

• antitrust

• communications

What is the Sherman Anti-trust Act of 1890

US law aimed to prevent monopolies and promote competition by making things that restrain commerce or trade illegal.

Texas Railroad Commission created in ____ under the leadership of ____ (1891-1895)

• 1893

• Jim Hogg

____ created in 1915 by the ____

• Federal Trade Commission

• Clayton Anti-Trust act

Regulation

• can take many different forms

• requires certain procedure

• there are more rules/regulations than laws

• they implement more general laws

____ are provided by government’ you obtain ____ on your own

• public goods

• private goods

____ and ____ are examples of public goods

• defense

• clean environment

The _____ was created in response to the 2008 financial crisis

• consumer financial protection board

What are the three goals in fiscal policy debate?

• personal income tax cuts

• reduce debt

• protect social security medicare, and medicaid

Why are budget surpluses rare

• they result in higher taxes and less govt. spending

• should be done during prosperity and growing GDP eras

• the last years od surplus were 1999 and 2000

Great Recession of 2008

• result of risk taking in banking and the financial sector

• large banks collapsed when debtors could not repay loans

• the consumer financial protect board

Consumer Financial Protection Board

• Created to protect consumers from predatory lending

• Created July 2010