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40 terms

chapters 16,17,18

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Trust
companies that benefit from the high prices they all agree to charge
Business cycle
a repeated series of economic ''ups'' and ''downs''
inflation
a general rise in the price level of goods and services
surplus
the amount by which government income is greater than spending
deficit
the amount by which government spending is greater than income
monetary policy
regulation of money supply by the Federal Reserve System
monopoly
a single business with the power to control prices
federal budget
government plan for raising and spending money
protection of private property
is not an economic proble Americans wanted government to solve
run businesses for common good
is a method government use to correct economic problems
fiscal policy
government decisions about the money it spends and collects
public assistance programs
the government attempts to give citizens economic security
demand deposit
money in a checking account
loan
an amount of money borrowed for a certain time period
bartering
exchanging goods and services for other goods and services
currency
coins and paper bills used as money in an economy
recession
a slowdown in economic activity and production
money supply
the total amount of money available for use as a medium of exchange
full employment
situation when anyone who wants to work can find work
bond
certificate sold on the promise of later repayment, with interest
national income accounting
keeping track of national income and spending
regressive tax
affects higher-income earners at a greater rate than lower-income earners
deflation
a period of dropping prices
indirect tax
a tax that is paid by someone other than the person against whom it is levied
lottery
game in which people buy tickets in hopes of winning a prize
economic growth
increased production of goods and services nationally
direct tax
tax paid by the person against whom it is levied
progressive tax
tax that affects lower income earners at a higher rate than higher earners
balanced budget
scenario that occurs when planned spending is equal to income
proportional tax
tax imposed at the same rate for people of all incomes
excise tax
fee charged on certain types of goods
sales tax
tax added to goods and services when they are sold
revenue
income for the government
inflation or deflation
is not a goal of policy makers with regards to the economy
the benefits received principle means that
those who pay a tax should benefit from it
most state and local governments are required by law
to have balanced or surplus budgets
the national debt refer
to the total amount of money the government has borrowed but not yet repaid
the framers of the constitution believed citizens have a basic right
to their economic freedom
gross domesic product (GDP)
how the government monitor the nation's economic health
federal taxes
take 25 percent or more of most people's income