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Term | Definition |
---|---|
Fiscal Policy | Government decisions regarding taxes citizens must pay and the amount of $ the government spends |
inflation | a general rise in prices throughout the economy |
Standard of Living | the quality of life measured by the amount of goods and services people can buy and the leisure time they have |
Economic Indicators | statistical tools used to measure the condition of the Nation's economy |
Progressive Taxes | The wealthy pay a greater share than the less well off |
Money Supply | Consists of cash, checking accounts, and travelers checks |
Demand deposits | Mostly checking accounts |
Regressive Taxes | Everyone regardless of wealth pays the same amount |
Monetary Policy | Actions by the Federal Reserve to influence the economy by regulating the amount of money in circulation |
Business Cycle | The ups and downs of the economy over a period of time |
Gross Domestic Product(GDP) | The total value in dollars of all goods and services produced in the country in one year |
Recession | A period on the business cycle marked by low economic activity, reduced profits, and rising unemployment |
Depression | A severe recession lasting longer than a year |
The New Deal | Government programs instituted by Franklin D. Roosevelt to rescue the country from the Great Depression |
16th Amendment | Established the Federal income Tax |
Private Property | Property owned by individuals and businesses without government interference |
Competition | Rivalry between producers/sellers of goods & services |
Government Securities | Saving bonds, treasury notes, treasury bills, the U.S. sells as a way to borrow money |
Production | The combining of human (labor), natural resources, capital, and management to make goods and services |
Incentives | Things that motivate or change economic behavior |
Federal Reserve System | The nation's banking system designed to regulate federal monetary policy |
Reserve Requirement | The minimum amount of money the fed requires member banks to keep on hand |
Consumption | Using goods &services |
Discount Rate | Interest rate charged to member banks that borrow money from the "FED" |