Chapter 21.3-4 by Kelly May https://padlet.com/kelly_may2/q8pf4w9oduhn sections 3 and 4 en-us 2018-04-07 14:52:39 UTC 2018-04-09 00:16:35 UTC hello@padlet.com Economic Indicators kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249434331
  • to get an overall idea of how the economy is going, officials use economic indicators.
  • indicators are:
    • market conditions, reports, stock market indices, reports about employment levels, etc.
    • ]]>     2018-04-07 14:54:36 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249434331     Monetary Policy kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249435555
  • involves managing the supply of money and the cost of borrowing to meet the needs of the economy. 
  • Federal Reserve System is responsible for this

    • ]]>     2018-04-07 15:05:17 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249435555     Fiscal Policy kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436158
  • involves using government spending and taxation to influence the economy
  • The problems
    •  it is often difficult for Congress and the president to enact it quickly 
    • spending to stimulate the economy usually leads to deficits
    • government spending is difficult to scale back when the economy recovers
    • ]]>     2018-04-07 15:12:45 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436158     Organization of the Fed kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436201
  • established in 1913
  • organized as a privately-owned stock corporation. 
  • seven-member Board of Governors supervises
    • ]]>     2018-04-07 15:13:18 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436201     Making Monetary Policy kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436357
  • The Board of Governors major responsibilities for monetary policy:
    • determines the general money and credit policies of the United States
    • supervises the operations of the Federal Reserve Banks in the 12 districts across the country
  • three tools to control the nation’s monetary policy 
    • can raise or lower the discount rate. 
    • can put money into the economy by buying government bonds on the open market.
    • can raise or lower the reserve requirement for member banks. 

    • ]]>     2018-04-07 15:15:20 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436357     Sales Tax kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436419
  • calculated as a percentage of dollars spent to buy goods. 
  • two types: 
    • the general sales tax
    • the selective sales tax- imposed on a narrower range of items
    • ]]>     2018-04-07 15:16:02 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436419     State Income Tax kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436441
  • most states have individual income taxes and corporate income taxes
    • ]]>     2018-04-07 15:16:08 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436441     Intergovernmental Revenue kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436471
  • The federal government currently provides about one-quarter of all state revenues.
  • Federal funds often come to states in the form of federal grants called grants-in-aid
  • grants influence the states
    • supply funds for programs that states might not otherwise fund
    • promote programs and goals that reflect national goals
    • often set minimum standards for a service in the states
    • ]]>     2018-04-07 15:16:27 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436471     Federal Mandates kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436474
  • formal order given by a higher authority, in this case by the federal government.
    • ]]>     2018-04-07 15:16:32 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436474     Service Charges kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436483
  • largest part of revenue generated by charging for services comes from higher education and health care services provided at state hospitals.
    • ]]>     2018-04-07 15:16:37 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436483     Other Revenue Sources kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436490
  • More than 40 states run public lotteries to raise revenue. 
  • Payments by workers into public employees’ retirement funds are another source of revenue. 
    • ]]>     2018-04-07 15:16:42 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436490     Borrowing kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436499
  • bond- a contractual promise on the part of the borrower to repay a certain sum plus interest by a specified date.
    • ]]>     2018-04-07 15:16:48 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436499     Property Tax kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436604
  • the most important source of revenue for local governments
  • collected on real property and personal property. 
  • government property and property used for educational, religious, or charitable purposes are exempt from the property tax. 
    • ]]>     2018-04-07 15:18:05 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436604     Other Local Revenue Sources kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436611
  • Local governments sometimes impose local income taxes, sales taxes, and fines and fees, or operate government-owned businesses to raise additional revenue
    • ]]>     2018-04-07 15:18:12 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436611     Intergovernmental Revenue kelly_may2 https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436620
  • most local governments receive economic aid from state and federal governments in form of grants
    • ]]>     2018-04-07 15:18:19 UTC https://padlet.com/kelly_may2/q8pf4w9oduhn/wish/249436620