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Economics Vocabulary

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Term
Definition
show Government decisions regarding taxes citizens must pay and the amount of money the government spends  
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Inflation   show
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show The Quality of life measured by the amount of goods and services people can buy and the leisure time they have  
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show Statistical tools used to measure the condition of the nation’s economy  
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Progressive Taxes   show
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show Consists of cash, checking accounts, and travelers checks  
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show Mostly checking accounts  
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show Everyone regardless of wealth pays the same amount  
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show Actions by the Federal Reserve to influence the economy by regulating the amount of money in circulation  
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Business Cycle   show
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Gross Domestic Product   show
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show A period on the business cycle marked by low economic activity, reduced profits, and rising unemployment  
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show A severe recession lasting longer than a year  
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The New Deal   show
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show Established the Federal Income Tax  
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show Property owned by individuals and businesses without government interference  
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Competition   show
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show Savings bonds, treasury notes, and treasury bills the US sells as a way to borrow money  
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show The combining of human (labor), natural (land), and capital resources along with management to make goods and services  
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show Things that motivate or change economic behavior  
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show The nation’s baking system designed to regulate federal monetary policy  
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Reserve Requirement   show
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Consumption   show
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show Interest rate charged to member banks that borrow money from the “FED”  
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