What's the Difference Between a Structural and a Passive Budget

question 80

Essay

What's the difference between a structural and a passive budget deficit? What contributes to a passive deficit? Use the distinction between passive and structural deficits and surpluses to explain how the $5.9 trillion surplus that economists back in 2000 predicted would occur over 15 years quickly disappeared during the 2001/2002 recession

Understand how the tax-transfer system affects income distribution.

Gain insights into international comparisons of tax progressivity.

Understand the concept of progressive, regressive, and proportional taxes, and their impact on different income groups.

Analyze the effects of specific taxes, including excise taxes and property taxes, on market equilibrium, tax incidence, and government revenue.

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Definitions:

Held-To-Maturity

A categorization for investments in fixed income securities that the investor intends and is able to hold until the date of maturity.

Fair Value Method

An accounting approach used to assess and report the value of certain assets and liabilities at their current market prices.

Cost Method

An accounting approach used to value inventory or investments based on the original purchase cost, without adjusting for market changes.

Foreign Exchange Rates

The value at which one currency can be exchanged for another.