After reading this chapter, you should be able to:
Explain why tax rebates were given to the American people during the Bush Administration and know the advantages and disadvantages of the rebates.
Explain how and why the American national economy can be the major reason for both the defeat and victory of presidential incumbents/challengers.
Differentiate between fiscal and monetary policy as well as define such key terms as deficit, surplus, Keynesianism, the CEA, monetarism, debt, and supply-side economics. Why has the influence of fiscal policy diminished?
Explain the organization and operation of the Federal Reserve system, how the Fed can affect the national economy through its various operations, and who, if anyone, has the greatest influence over the Fed.
Understand how tax preferences affect the tax burden.
Describe the differences between regressive and progressive taxes and be able to give examples of each.
Review the various types of suggested tax reforms, such as the flat tax.
Summarize how the U.S. economy rates in comparison with other nations on such indices as job creation, general prosperity, level of debt, deficits, tax burdens, and income inequality.
