Notes on "Role of the Government/Government Spending/Transfer Payments"
Terms to Know
Tax that increases with income; income tax is an example.
Government policies that go into effect automatically as the
economy slows to counter economic slowing; the payments increase in a
recession and decrease with increased employment as an economy grows and
enters into the expansionary phase.
Government policy that seeks to provide economic relief
to low income earners by providing welfare and other benefits (transfer
payments) funded by tax revenue generated from high income earners.
A good that is typically provided or made available through thegovernment; the good is characterized
as being both non-rivalrous and non-exclusive.