sales tax	levied when a commodity is sold to its final consumer
fiscal policy	government actions concerning taxation and public expenditure
optimal	the best/the most likely to bring success
a loophole	small mistake or exception in a law that allows people to avoid paying sth
tax wedge	all the money we earn but never see
tax shelter	postponing the payment of taxes (3rd pillar)
a boom	long period of expansion
GDP	the total market value of all goods and services produced in a country during specified period
commercialize	organize sth to make profit
deficit	the amount of money that is smaller than is needed
surplus	the amount of money that is larger than is needed
wealth tax	tax on a net worth (as a % of net worth or net worth exceeding certain level)
income tax	payed on wages and salaries
unfettered	not limited by any rules or controls
externalities	positive or negative consequences of economic actvities experienced by other people
money supply	the total amount of money available in the economy at a particular time
capital gains tax	tax payed on income from sale of capital assets
progressive tax	tax levied at a higher rate on higher incomes
monetary policy	government or central bank actions concerning the rate of growth of money in the circulation
trough	the stage that marks the end of a period of contraction and the transition to expansion
lump sum	the income level at which a person begins paying income taxes
tax avoidance	use of legal methods to modify a financial situation in order to lower the amount of income tax
equilibrium	a state of balance
tax evasion	illegal practice where a person/organization intentionally avoids paying tax liability
balance of payments	the difference between the funds a country receives and those it pays for international transactions
consumption	purchasing and using goods and services
depression/slump	a downturn that lasts a year or two
downturn/contraction	a decline in economic activity
upturn/expansion	an increase in economic activity
recession	a downturn that lasts more than 6 months
Keynesianism	theory that government monetary and fiscal policy should stimulate business activity in a recession
demand	the willingness and ability of consumers to purchase goods and services
supply	the willingness and ability of businesses to offer goods and services for sale
allocation	distribution according to plan