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Decisions on government spending and taxation to influence aggregate demand.
Occurs when government spending exceeds revenue.
Happens when government revenue is greater than spending.
When government spending equals revenue.
To influence economic activity and promote equity.
Taxes levied directly on income or wealth.
Indirect taxes are levied on spending, not directly on income.
A tax that takes a higher percentage from the rich.
A tax where the percentage paid decreases as income rises.
A tax where the percentage paid remains constant regardless of income.
Equity, based on the ability to pay.
They may discourage work and investment.
They typically raise prices for consumers.
It generally increases due to higher disposable income.
The legal act of minimizing tax payments.
The illegal act of not paying taxes owed.
It can reduce incentives to work and produce.
The source of tax revenue, including items and people taxed.
The distribution of the burden of an indirect tax.
Increases in spending or tax cuts to boost aggregate demand.
Cuts in spending or tax increases to reduce aggregate demand.
By creating incentives for employment through tax cuts.