Government Taxation and Spending Quiz

Direct taxation is a tax imposed directly on individuals or organizations.

The IRS is responsible for collecting taxes and enforcing tax laws in the U.S.

Taxation is the process of collecting taxes from individuals and businesses.

Income tax refunds are returns of excess amounts of income tax that a taxpayer has paid.

Interest rates are set by central banks and are not typically considered a tool of fiscal policy.

Fiscal policy is used by governments to influence a country's economy through taxation and spending.

Supply-side economics believes in stimulating economic growth by lowering taxes.

A progressive tax system taxes higher incomes at higher rates.

The national debt is the total amount of money that a government owes to creditors.

Automatic stabilizers are features of the economy that automatically counteract economic shocks.

Contractionary fiscal policy aims to reduce inflation by decreasing government spending or increasing taxes.

Expansionary fiscal policy is used to stimulate economic growth, often by lowering taxes or increasing government spending.

Fiscal equilibrium is the level of government spending and taxation at which the economy is producing at full employment and price stability.