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Unit 7 Vocab 2

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 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.
16th Amendment Established the Federal income tax.
Private Property Property owned by individuals and business without government interference.
Competion Rivalry between producer/sellers of goods and services.
Government Securities Saving bonds, treasury notes, treasuring bills, the U.S. sells as away to borrow money
Production The combining of human, natural, management, and capital resources, to make goods and services.
Incentives Things that motivate or change 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 and services
Discount Rate Interest rate charged to member banks that borrow money from the "FED."
Created by: 328485
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