a specific course of action taken by government to achieve a public goal.
iron triangle - issue network
a mutually dependent relationship among interest groups, congressional committees and subcommittees, and government agencies that share a common policy concern - a policy making alliance among loosely connected participants that comes together on a particular issue, then disbands.
a rise in general price level (and decrease in dollar value) owing to an increase in the volume of money and credit in relation to available goods.
consumer tax on a specific kind of merchandise, such as tobacco
the difference between the revenues raised annually from sources of income other than borrowing and the expenditures of government, including paying interest on past borrowing.
government programs such as unemployment, disaster relief, and disability payments that provide benefits to all eligible citizens
general tax on sales transactions, sometimes exempting food and drugs.
economic theory based on the principles of john maynard keynes, stating that government spending should increase during business slumps and decrease during booms.
federal laws (starting with the sherman act of 1890) that try to prevent a monopoly from dominating an industry and restraining trade
the act of making or enacting laws - A law or set of laws made by a government
the informal list of issues that congress and the president consider most important for action.
gov. policy that attempts to manage the economy by controlling taxing and spending.
a gov. policy that attempts to manage the economy by controlling the money supply and thus interest rates
a tax graduated so that people with higher incomes pay a larger fraction of their income than people with lower incomes
a tax whereby people with lower incomes pay a higher fraction of their income than people with higher incomes
VAT - value added tax
a tax on increased value of a product at each stage of production and distribution rather than just at the point of sale
GATT - general agreement on tariffs and trade
an international trade organization with more than 130 members, including the US and the people's republic of china, that seeks to encourage free trade by lowering tariffs and other trade restrictions
Federal Reserve System
The system created by Congress in 1913 to establish banking practices and regulate currency in circulation and the amount of credit available. It consists of 12 regional banks supervised by the Board of Governors. Often called simply the Fed.
GDP - Gross Domestic Product
the total output of all economic activity in the nation, including goods and services
CBO - congressional budget office
an agency of congress that analyzes presidential budget recommendations and estimates the costs of proposed legislation
OMB - office of management and budget
presidential staff agency that serves as a clearing-house for budgetary requests and management improvements for governmental agencies
an imbalance in international trade in which value of imports exceeds the value of exports
NATO - North Atlantic Treaty Organization
Alliance of the allied powers against the Soviets; made to defend one another if they were attacked by any other country; US, England, France, Canada, Western European countries
NAFTA - North American Free Trade Agreement
agreement signed by the US, Canada, and mexico in 1992 to form the largest free trade zone in the world
tax levied on imports to help protect a nation's industries, labor, or farmers from foreign competition. can also be used to raise additional revenue.
national health insurance program for the elderly and disabled
federal program that provides medical benefits for low-income persons.
a combo of entitlement programs, paid for by employer and employee taxes, that includes retirement benefits, health insurance, and support for disabled workers and the children of deceased or disabled workers
weapons of mass destruction
biological, chemical, and nuclear weapons that can inflict mass casualties in a single event
A policy adopted by the Bush administration in 2001 that asserts America's right to attack any nation that has weapons of mass destruction that might be used against U.S. interests at home or abroad.
associated with the bush doctrine, a belief that a nation is justified in attacking another nation to prevent possible attacks on itself. also, the right of a federal law or regulation to preclude enforcement of a state or local law or regulation.
denial of export, import, or financial relations with a target country in an effort to change that nation's policies.