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unit 7b vocabulary

Fiscal Policy Government decisions regarding taxes citizens must pay and the amount of money 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 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
16 th Amendment Established the Federal Income Tax
Private Property Property owned by individuals and businesses without government interference
Competition Rivalry between producers/sellers of goods and services
Government Securities Savings bonds, treasury notes, and treasury bills the US sells as a way to borrow money
production The combining of human (labor), natural (land), and capital resources along with management to make goods and services
Incentives Things that motivate or change economic behavior
Federal Reserve System The nation’s baking system designed to regulate federal monetary policy
Reserve Requirement The minimum amount of money the Federal Reserve requires member banks to keep on hand
Consumption Using goods and services
Discount Rate Interest rate charged to member banks that borrow money from the “FED”
Created by: starr0464
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