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…
Category: Finance
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…
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…
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…
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…
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…
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…
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…
What Is Economic Growth?
How Does Economic Growth Work? Economic growth is the increase in the value of an economy’s goods and services, which…
Why Trickle-Down Economics Works in Theory But Not in Fact
Trickle-down economics is a theory that claims that benefits for the wealthy trickle down to everyone else. These benefits are tax…