Exchanging goods and services for other goods and services without the use of money
The coins and paper bills used as money in an economy
The money in a checking deposit
The total amount of money available for use as a medium of exchange
An amount of money borrowed for a certain time period
Fractional Reserve Banking
A system of banking whereby banks keep a percentage of checking and saving deposits in reserve, leaving the rest available for loans and investments
Federal Reserve System
The central bank of the US, which provides services to banks, regulates their activities, and controls the nation's monetary policy
Board of Governors
Seven people appointed by President for a 14 year terms who are responsible for running the Federal Reserve System as a whole
A slowdown in economic activity and production
A situation in which any person who wants and is able to work should be able to find a job
A tax on what individuals and businesses earn. (Progressive)
Charges on purchases of goods and services, usually a percentage of that price.
National Income Accounting
The tracking by the federal government of all the income and spending happening in the overall economy.
An increase in the production of goods and services, which may provide citizens with a higher standard of living.
A decrease in the overall price level
A tax system whereby each taxpayer is required to pay the same proportion or percentage of their income as taxes
A tax that takes a higher percentage from the income of a person who has a low income than from a person who has a higher income
A tax system where by the percentage of a person's income that he or she pays in taxes increases with the more income he or she has
A tax that directly affects the person against whom it is levied
A tax paid by someone other than the person against whom it is charged
A charge on certain goods, such as alcoholic beverages, gasoline, and tobacco.
A certificate that people buy from the government which agrees to pay back the cost of the bond, plus interest, after a set period of time
State sponsored game in which player buy tickets hoping to win a cash prize
When government spends less than the tax revenues it receives.
When a government's spending equals the tax revenues it receives.
When a government spends more than the tax revenues it receives.
Benefits paid by the government to people who are law entitled to them
The Freedom to own property, to make a profit, and to make choices about what to produce, buy, and sell
A group of companies organize to benefit from the high prices they all agree to charge
A single business with the power to control prices in a market.
A repeated series of "ups" of growth and "downs" of recession.
Regulation of the money supply by the Federal Reserve
A government's decisions about the amount of money it spends and the amount it collects in taxes
A general rise in the prices of goods and services throughout the economy
Gross Domestic Product
The total dollar value of all final goods and services produced and sold in the country in a year
The government's plan for how it will raise and spend money
The amount by which government spending is greater than government income
The amount by which the government's income is greater than government spending
The total amount of money the government owes to lenders