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104 Cards in this Set
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macroeconomics
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branch of econ. tht deals w/ economy as a whole, includin employment, gross domestic product, inflation, econ. growth and distribution of income
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Giveback
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a wage,Fringe benefit or work rule given up when a labor contract is negotiated
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Two-Tier Wage system
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Keeps high wages for current workers but has a much lower wage for newly hired workers
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Glass Ceiling
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invisible barrier that obstructs advancement of women and minorities up the corporate ladder
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Comparable Worth
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Principle stating that people should receive equal pay for work that's different from but as demandas as other types of work
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Set Aside Contract
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Guaranteed contract reserved exclusively for a targeted group
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Part time Workers
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Workers that work less than 35 hours a week
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Minimum Wage
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Lowest wage that can be paid by law to most workers
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Current Dollars
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Dollars that aren't adjusted for inflation
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Real/Constant Dollars
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Dollars that are adjusted in a way that removes distortion of inflation
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Base Year
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A year that serves as a comparison for all other years
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Sin Tax
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Relatively high tax designed to raise revenue and reduce consumption of a socially undesirable product(liquor, tobacco)
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Incidence of a Tax
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Final burden of tax
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Tax Loopholes
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Exceptions or oversights in a tax law that allow some people and business to avoid paying taxes
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Individual Income Tax
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Tax on peoples earnings
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Sales Tax
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General tax levied on most consumer purchases
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Benefit principle of taxation
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people who benefit from govt goods and services should pay in proportion to the amount of benefits they receive
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proportional tax
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imposes same percentage rate of taxation on everyone regardless of income
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Average Tax rate
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total taxes divided by total income
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Progressive Tax
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imposes higher percentage rate of taxation on people w/high incomes than on those w/low incomes
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Marginal Tax Rate
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tax rate that applies to nxt $ of taxable income
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Regressive Tax
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imposes higher percentage rate of taxation on low incomes than on high incomes
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Payroll withholding system
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requires an employer to automatically deduct income taxes from employee's paycheck and send deducted tax directly to govt
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IRS(Internal Revenue Service)
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Branch of US Treasury in charge of collecting taxes
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Tax Return
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annual report to IRS(total income,deduction, etc)
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Indexing
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upward revisionof tax brackets to keep workers from paying higher taxes just because of inflation
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FICA
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Federal Insurance Contributions Act tax levied on both employers and employees for Social Security and Medicare
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Medicare
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Federal health care program available to all senior citizens regardless of income
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Payroll Tax
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taxes that are deducted from a paycheck
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Corporate Income Tax
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Tax a corporation pays on its profits
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Excise Tax
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tax on manufacturer or sale of selected items such as gas and liquor
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Luxury Goods
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economic product for which demand rises faster than income when income growns
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Estate Tax
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tax govt levies on transfer of property when a person dies
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Gift Tax
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tax on donations of dollars or wealth and is paid by the person who makes the gift
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Customs Duty
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charge levied on goods brought in from other countries
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User Fees
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charges levied for use of a good or service
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Intergovernmental revenue
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funds collected by one level of govt that are distributed to another level of govt for expenditures
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Property Tax
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tax on tangible possessions such as real estate, buildings, furniture, cars, stocks bonds, bank accounts
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Tax Assessor
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person who assigns value to property for tax purposes
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Payroll Withhold statement
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summary statement attached to a paycheck that summarizes income tax withholdings and other deductions
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Accelerated depreciation
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larger than normal depreciation charges
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Investment Tax Credit
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reduction in business taxes tied to investment in new plants and equipment
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civilian labor force
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men and women 16 yrs. old and avr who r either wrking or actively looking for a job
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craft/trade union
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association of skilled wrkers who perform same knd of work
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industrial union
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association of all wrkrs in a given industry regardless of job each person performs
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strike
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refuse to wrk until certain demands are met
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picket
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parade in frnt of employer's business carrying signs about a dispute
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boycott
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mass refusal 2 buy products from targeted employers or companies
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lockout
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refusal to let employees wrk until management demands are met
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company union
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union organized, supported and run by employers
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great depression
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grtest period of economic decline and stagnation in US history
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right to work law
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state law mking it illegal 2 force wrkrs 2 join a union as a condition of employment even though a union may already exist in company
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independent union
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union that doesn't belong to AFL-CIO
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closed shop
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sit. in which employer agrees to hire only union members
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union shop
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wrkr dsnt have to blng 2 union 2 b hired but must join soon aftr and remain a member 4 as lng as he/she keeps job
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modified union shop
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wrkrs dnt hv 2 blng 2 a union 2 b hired & cnt b made 2 join 1 to keep jobs
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agency shop
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agreement tht dsnt require a wrkr 2 join a union as a condition 2 get or keep a job, but requires wrkr 2 pay union dues 2 hlp pay collective bargaining costs
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grievance procedure
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contract provision for resolving issues tht may come up later
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mediation
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bringing in a neutral 3rd person(s) 2 hlp settle a dispute
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arbitration
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both sides agree 2 place their difference b4 a 3rd party whose decision will b accepted as final & binding
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fact-finding
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agreement between union & management 2 hv a 3rd neutral party collect facts about a dispute and prsnt nonbinding recommendations
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injunction
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court order not to act
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seizure
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temporary take over of operations
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unskilled labor
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wrkrs tht wrk w their hnds b/c they lack training and skills required for othr tasks
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semiskilled labor
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wrkrs w/ enough mechanical abilities and skills to operate machines tht require a min. amount of training
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skilled labor
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wrkrs able 2 operate complex equipement and can perform their tasks w/ little supervision
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professional labor
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ppl w highest level of knowledge based edu. and managerial skills
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noncompeting labor grades
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broad categories of labor tht dsnt directly compete w/ 1 another b/c of experiencing, training, edu. and othr human campital invetments
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wage rate
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stndrd amount of pay given for wrk performed
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equilibrium wage rate
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leaves neither surplus nor shortage in labor market
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theory of negotiated wages
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organized labor's bargaining strength is a factor tht hlps determine wages
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seniority
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length of time person has been on job
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signaling theory
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employers are usually willing 2 pay more 4 pplw/ certificates, diplomas, degrees, and othr indicators
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labor mobillity
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ability and willingness of wrkrs 2 relocate in markets where wages are higher
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sur charge
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additional tas above and beyond base rate
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alt. min. tax
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personal income rate tht applies whenever amount of taxes paid falls below some designated level
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capital gains
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profits frm sale of an asset hld for 12 months
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value added tax (VAT)
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tax placed on walue tht manufacturers add at each stage of production
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flat tax
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proportional tax on individual income after a specified threshold has been reached
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per capita
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per person
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public sector
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prt of economy made up of fed, state, and local govs.
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private sector
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prt of econ. made up of private individuals and privately owned businesses
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transfer payment
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gov. recieves neither goods nor services in return
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grant in aid
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transfer payment that 1 level of gov makes 2 another
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distribution of income
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way in which income is allocoated among families, individuals, or othr designated grps in economy
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fed. budget
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annual planning outlinning proposed revenues and expenditures for the coming year
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mandatory spnding
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spnding authorized by law tht continues without need for annual approvals of congress
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discretionary spnding
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programs tht must recieve annual authorization
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fiscal yr
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12 month financial planning period tht may or may not coincide w/ calendar yr.
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fed. budget surplus
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escess of revenues ovr expenditures
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fed. budget deficit
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shortfall if expenditures are larger than revenues
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appropriations bill
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act of congress tht allows fed. agencies to spend money for specific purposes
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medicaid
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join fed state medical insurance prgrm for low income ppl
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balanced budget amendment
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requires tht annual spnding not exceed revenues
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intergovernmental expenditures
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funds tht 1 level of gov transfers to anotherlevel for spending
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deficit spending
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spending in excess of revenues collected
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fed. debt
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total amount borrowed from investors to finance govs deficit spending
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balanced budget
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annual budget in which expenditures = revenue
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trust fund
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special account used to fund specific types of expenditures such as social security and medicare
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crowding out effect
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high than normal interest rate tht heavy gov. borrowing causes
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"pay-as-you-go" provision
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requirement tht new spnding proposals or tax cuts must be offset by reductions eslewhere
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line-item veto
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pwr 2 cancel specific budget items without rejecting entire budget
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spending cap
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legal limit on annual discretionary spending
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entitlement
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broad social program tht uses established elligibility requirements to provide health, nutrional or income supplments to individuals
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