| A | B |
|---|
| Fiscal Policy | tax and spend |
| Progressive taxes | you make more, you're taked more |
| Proportional taxes | Flat tax rate |
| Regressive taxes | poorer people pay more |
| estate taxes | taxes on the assets of a person who has died |
| customs duty | tax on goods brought in from another country |
| tax incentive | a tax break that encourages buying new capital goods |
| Expansionary Fiscal Policy | increased gov't spending and/or decreased taxes |
| Restrictive Fiscal Policy | Decrease gov't spending and/or increasing taxes |
| Deficit | Spending > Income for a specific time period |
| Debt | total amount borrowed (cumulative deficits) |
| Budget Balance | Surplus or Deficit, which is it? |
| Surplus | Income > Spending |
