10 terms

Ch. 16 Economic Policy

STUDY
PLAY

Terms in this set (...)

tax base
the overall wealth (income and assets of citizens and corporations) that the government can tax to raise revenue
economy
a system for producing, selling, buying and using goods and services
laissez-faire
hands-off stance of a government in regard to the marketplace
deficit spending
government expenditures costing more than is raised in taxes during the budget year, leading to borrowing and spending.
Keynesian economics
theory that recommends that during a recession, the national government should increase its spending and decrease taxes and during a boom, it should cut spending and increase taxes.
recession
an economic downturn during which unemployment's high and the production of goods and service is low.
fiscal policy
government spending and taxing and their effect on the economy
supply-side economics
theory that advocates cutting taxes and deregulating business to stimulate the economy
deregulation
reduction or elimination of government rules and regulations (laws) that businesses and industries must follow
monetarism
theory that says the government's proper economic role is to control the rate of inflation by controlling the amount of money in circulation.