Contractionary Fiscal Policy and Its Purpose With Examples
Contractionary fiscal policy is when the government either cuts spending or raises taxes. It gets its name from the way it contracts the economy. It reduces the amount of money
Author: Alan
U.S. Federal Government Tax Revenue
U.S. federal tax revenue is made up of the total tax receipts received by the government each year. Most of it is paid either through income taxes or payroll taxes. The
The U.S. Congress and Its Powerful Impact on the Economy
The U.S. Congress is the legislative branch of the federal government. It has two bodies: the Senate and the House of Representatives. The Senate comprises two elected officials from each state. The House of
Expansionary Fiscal Policy and How It Affects You
Expansionary fiscal policy is when the government expands the money supply in the economy using budgetary tools to either increase spending or cut taxes—both of which provide consumers and businesses with more money to spend. In the United
What Is Fiscal Policy?
DEFINITION Fiscal policy refers to decisions the government makes about spending and collecting taxes and how these policy changes influence the economy. When the government makes fiscal policy decisions, it has
What Is the Unemployment Rate Formula?
Definition and Examples of the Unemployment Rate The U.S. unemployment rate by year shows the percentage of people in the U.S. population who are unemployed in a given year. The U.S. Bureau
What Is the Real Unemployment Rate?
The U-6 real unemployment rate includes the underemployed, the marginally attached, and discouraged workers. It’s usually much higher than the U-3 unemployment rate, which is the rate most often reported in the media. The Bureau of Labor
What Is the Natural Rate of Unemployment?
Definition and Examples of the Natural Rate of Unemployment The natural unemployment rate is the lowest level sustainable without creating inflation. In a healthy economy, workers are always coming and going,
Economic Depression, Its Causes, and How to Prevent It
An economic depression is a severe downturn that lasts several years. Fortunately, the world has only experienced one economic depression. That was the Great Depression which lasted for 10 years. The decline in the gross domestic
What Is Middle-Class Income?
Definition and Examples of Middle-Class Income Although the U.S. government doesn’t have an official definition of middle-class income, the Pew Research Center considers a household to have “middle-income” if it’s between 67%