POD B Unit 4-Macroeconomics

studied byStudied by 49 People

tax rate


Tags & Description



Studying Progress

New cards
Still learning
Almost Done
76 Terms

tax rate

the percentage that is levied on the valuer of whatever is being taxed, such as income or property

proportional tax

a tax that takes the same share of income at all income levels

progressive tax

a tax that takes a larger share of income as income increases

regressive tax

a tax that takes a smaller share of income as income increases


the basic physical and organizational structures and facilities needed for the operation of a society or enterprise

tax base

the thing that is taxed

flat tax

a tax system with a constant marginal rate, usually applied to individual or corporate income

tax code

a set of laws that govern federal taxes


employers take out a certain amount of tax from each paycheck

W-2 form

lists the wages from the previous calendar year and the amount of tax that was withheld

payroll tax

a tax on the wages a company pays its employees

social security tax

set at fixed rate, which is paid half by the employer and half by the employee

medicare tax

An employee's earnings that are subject to a U.S. payroll tax

property taxes

tax on the value of a property, usually levied on real estate

sales tax

levies a percent charge on the purchase of a wide variety of goods and services

excise taxes

taxes paid when purchases are made on a specific good, such as gasoline

sin taxes

a tax on items considered undesirable or harmful, such as alcohol or tobacco

luxury taxes

a tax placed on products or services that are deemed to be unnecessary or non-essential

federal deficit

shortfall between tax revenues and government expenditures

national debt

total amount owed money by a nation's government as a result of borrowing

fiscal year

a 12 month accounting period

mandatory spending

spending that is fixed by law


programs through which individuals receive benefits based on their age, income, or some other criteria

discretionary spending

is government spending implemented through an appropriations bill


an increase in the overall price level of goods and services produced in an economy

economic indicators

statistics that help economist judge the health of an economy

gross domestic product (GDP)

the market value of all final goods and services produced within a country during a given period of time

unemployment rate

the percentage of the labor force that is not employed but is actively seeking work

inflation rate

the percentage of increase in the average price level of goods and services from one month or year to the next

consumer price index (CPI)

a measure of price changes in consumer goods and services

business cycle

a recurring pattern of growth and decline in economic activity over time


a period of declining national economic activity for at least six months or longer

market value

the price consumers are willing to pay for a good or service in a competitive market place

final good

any new good that is ready for use by a consumer

intermediate goods

goods that are used in the production of final goods

net exports

the value of all exports minus all imports

nominal GDP

GDP evaluated at current market prices that will include all of the changes in market prices that have occurred during the current year due to inflation or deflation.

current dollars

value of a dollar without adjusting for the effect of inflation

real GDP

a macroeconomic measure of the value of economic output adjusted for price changes

constant dollars

fixed rate that was current in a specified base year

per capita GDP

nations real gross domestic product divided by its population

frictional unemployment

the unemployment which exists in any economy due to people being in the process of moving from one job to another

structural unemployment

unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand

seasonal unemployment

occurs when people are unemployed at certain times of the year, because they work in industries where they are not needed all year round.

cyclical unemployment

a factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle

natural rate of unemployment

a combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium (4-6%)

discouraged workers

a person of legal employment age who is not actively seeking employment or who does not find employment after long-term unemployment

involuntary part-time workers

unable to find full-tie jobs, settle for part time employment

underground economy

people who earn income from gambling, drug dealing, and other illegal activities