1. Taxes and Fiscal Policy
Unit 3
Coach Lott

2. Tax
a compulsory contribution to state revenue, levied by the government on a person, place, or thing.

3. Revenue
income, especially of a company or organization.

4. Proportional Tax
A proportional tax is an income tax system where the same percentage of tax is levied on all taxpayers, regardless of their income.

5. Progressive Tax
A progressive tax is a tax in which the tax rate increases as the taxable amount increases. 

6. Regressive Tax
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. 

7. Fiscal Policy
Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.

8. Federal Budget
The federal budget is an itemized plan for the annual public expenditures of the United States.

9. Budget Surplus
A budget surplus is a period when income or receipts exceed outlays or expenditures.

10. Budget Deficit
A budget deficit occurs when expenses exceed revenue.

11. National Debt
 the total outstanding borrowings of a nation's central government. 

12. Appropriations Bill
a legislative act proposing to authorize the expenditure of public funds for a specified purpose.

13. Automatic Stabilizer
 economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers on an individual basis.

14. Multiplier Effect
An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

15. Public Good
a product that one individual can consume without reducing its availability to another individual, and from which no one is excluded. 

16. Private Good
a product that must be purchased to be consumed, and consumption by one individual prevents another individual from consuming it.