ECON103 Study Guide - Comprehensive Final Exam Guide - Gross Domestic Product, Tax Rate, Progressive Tax
20 Nov 2018
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Chapter 15: federal budgets and tools for fiscal. A budget describes plans for spending and income. Plan for spending and raising funds for the government t2 sides to budget- Transfer payments --> payments made to individuals when no good or service is received in return. Government outlays= government spending + transfer payments (1) government spending: related to purchase of goods and services. Examples: bridges, roads, military equipment, etc. (2) transfer payments: not included in gdp, and no new production, redistribution of welfare. Other small fees as well (national park admittances, etc. ) Altering requires long run changes to existing laws. Can be altered when the annual budget is set. Enacted in 1935 by fdr as part of new deal. Requires workers to contribute a portion of their earnings to the social security trust fund. Purpose= to guarantee that american workers retire with at least some retirement income. Federal programs that funds health care for retirees.
