Quizlet American Government: Chapter 15

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  1. Balanced Budget-Budget Surplus: The federal government receives more in tax and other revenues than it spends
  2. Budget Deficit: More expenses than income (revenue).
  3. Capital-Gains Tax: The tax that people pay on gains in capital investments (property, stocks, etc...)
  4. Deficit Spending: The government spends more than it gets from taxes
  5. Demand-Side Economics: When the economy is sluggish, the government can increase its spending, thus placing more money in consumers' hands
  6. Deregulation: The rescinding of regulations already in force for the purpose of improving efficiency
  7. Economic Depression: An exceptionally steep and sustained downturn in the economy
  8. Economic Recession: A less severe economic downturn than a depression
  9. Efficiency: The relationship of inputs to outputs
  10. Equity: ______ occurs when an economic transaction is fair to each party. It is judged by outcomes
  11. Externalities: External economic costs
  12. Graduated Personal Income Tax: The tax rate goes up substantially as income rises
  13. Inflation: An increase in the average level of prices of goods and services
  14. Laissez-Faire Doctrine: The ______ doctrine holds that private individuals and firms should be left alone to make their own production and distribution decisions
  15. Monetary: ______ policy is based on manipulation of the amount of money in circulation
  16. National Debt: The total cumulative amount that the U.S. government owes to creditors
  17. Public Policy Process: The political interactions that lead to the emergence and resolution of public policy issues
  18. Supply-Side Economics: ______ emphasizes the business (supply) component of the supply-demand equation