Suppose that gifts were taxed at a rate of 10% for amounts up to $100,000 and 20% for anything over that amount. Would this tax be regressive or progressive?

When governments run budget deficits, how do they make up the differences between tax revenue and spending?

When governments run budget surpluses, what is done with the extra funds?

Is it possible for a nation to run budget deficits and still have its debt/GDP ratio fall? Explain your answer. Is it possible for a nation to run budget surpluses and still have its debt/GDP ratio rise? Explain your answer

If an individual owns a corporation for which he is the only employee, which different types of federal tax will he have to pay?

What taxes would an individual pay if he were self-employed and the business is not incorporated?

The social security tax is 6.2% on employees' income earned below $113,000. Is this tax progressive, regressive or proportional?

Debt has a certain self-reinforcing quality to it. There is one category of government spending that automatically increases along with the federal debt. What is it?

What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?

What is the main reason for employing expansionary fiscal policy during a recession?

In a recession, does the actual budget surplus or deficit fall above or below the standardized employment budget?

What is the main advantage of automatic stabilizers over discretionary fiscal policy?

Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in a situation where the economy is producing less than potential GDP and then in a situation where the economy is producing more than potential GDP.

What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP?