Define Crisis and Provide an Example

question 8

Short Answer

Define crisis and provide an example.

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Definitions:

Government Intervention

Actions taken by government to influence or regulate economic activity, often to correct market failures and promote welfare.

Negative Income Tax

A system of income support that provides individuals with an income guarantee. If an individual's earnings fall below a certain level, they receive supplemental pay from the government rather than paying taxes.

Earned Income Tax Credit

A refundable tax credit for low to moderate income working individuals and families, aimed at reducing poverty and encouraging work.

Unemployment

A situation where individuals who are capable of working and willing to work are not able to find employment.